GLOBAL MARKETS-Wall St stocks rise as dollar, euro drop against yen

Reuters - UK Focus

* Yen rises as BoJ says more stimulus not needed

* Wall Street rise led by social media and Internet share

* Oil and gold rises as dollar drops (Adds U.S. closing, latest prices, Alcoa (NYSE: AA - news) after-the-bell)

By Michael Connor

NEW YORK (Frankfurt: HX6.F - news) , April 8 (Reuters) - The dollar and euro fellsharply against the yen on Tuesday as hopes for additionalstimulus out of Japan faded, while bargain-hunting on WallStreet lifted stock prices after three days of losses.

The greenback fell 0.60 percent against other majorcurrencies, and the decline was felt in other markets. Prices ofoil and gold jumped, and U.S. Treasuries added to two days ofstrong price gains after the government sold more debt.

For a second time this week, policymakers from a majorcentral bank deflated expectations of additional stimulus, withthe governor of the Bank of Japan, Haruhiko Kuroda, saying onTuesday there was no need for more monetary support to escapedeflation.

Investors had expected the BoJ to indicate more support wasforthcoming, and the yen rose as the Bank of Japan keptits policy steady.

"You had a lot of players who were short the yen, and Kurodadashed the hopes of stimulus," said Richard Scalone, co-head offoreign exchange at TJM Brokerage in Chicago.

The comments from the Bank of Japan came after policymakersfrom the European Central Bank on Monday said they would easepolicy further only if they thought the inflation outlook haddeteriorated sharply.

Against the yen, the dollar lost 1.4 percent, to 101.52 yen,the lowest level seen since March 19, when Federal Reserve ChairJanet Yellen seemed to suggest that U.S. interest rates couldrise earlier than markets expected.

The euro also lost substantial ground against theyen, falling more than 1 percent to 140.18 yen, thelowest level since March 28.

The yen marked its strongest one-day gain against the dollarand its biggest single-day rise against the euro in four weeks,according to Reuters data.

The dollar index, which measures the dollar against abasket of six major currencies, was off 0.60 percent and nearlows last seen on March 19.

The dollar has been facing headwinds since the government onFriday reported the U.S. economy added 192,000 jobs in March,down from about 200,000 in February.

"The data depicted the world's biggest economy stillstruggling to shift into a higher gear, which keeps pressure offthe Federal Reserve to raise rates for a while yet," JoeManimbo, an analyst at Western Union Business Solutions inWashington, said in a note to clients.

On Wall Street stocks rose as investors bought beaten-downshares of social media and Internet companies.

The Dow Jones industrial average rose 10.27 points or0.06 percent, to 16,256.14, the S&P 500 gained 6.92points or 0.38 percent, to 1,851.96 and the Nasdaq Composite added 33.234 points or 0.81 percent, to 4,112.986.

The day's biggest gainers included Inc,up nearly 3.0 percent at $327.07, Yahoo (TLO: YA-U.TI - news) ! Inc, up 2.3percent at $33.83, and LinkedIn Corp, up nearly 6percent to $169.10. The Global X social media index rose 2.4 percent to 18.50.

Gains in the blue-chip Dow Jones industrial average werecapped by a decline in bank stocks. Goldman Sachs Group (Frankfurt: GOS.F - news) fell 1.3 percent, and JPMorgan Chase & Co (NYSE: JPM - news) slipped 0.3percent.

Aluminum maker Alcoa Inc kicked off the earningsseason after the bell on Tuesday, reporting a first-quarter lossdue to a restructuring charge. But the stockjumped more than 2 percent in extended-hours trade.

Global stock markets were mixed, with the MSCI (NYSE: MSCI - news) world equityindex up 0.35 percent.

U.S. Treasuries prices rose, adding to two days of stronggains, after the government sold $30 billion in new three-yearnotes to better-than-average demand at a high yield of 0.90percent. It was the first of several auctions thisweek.

Benchmark 10-year notes were last up 5/32 inprice to yield 2.68 percent, down from 2.70 percent late onMonday. Thirty-year bonds gained 12/32 in price toyield 3.54 percent, down from 3.56 percent.

In commodity markets, gold was trading aroundtwo-week highs, up nearly 1 percent from the previous session at$1,309.10 an ounce. A traditional safe haven for investors, goldrose on the sharply lower dollar and renewed tensions betweenthe United States and Russia over Ukraine.

U.S. crude for May gained 2.1 percent to $102.59 abarrel, pushed up by the renewed tensions over Ukraine, a majorsupply route for Russian gas to Europe. The rise was capped byexpectations U.S. crude oil stocks were building up.

Brent rose $1.89, or 1.9 percent, to $107.71 abarrel. (Reporting by Michael Connor in New York; additional reportingby Marc Jones in London and Angela Moon, Karen Bretell andRichard Leong in New York; Editing by Leslie Adler and DanGrebler)

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