* 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 after-the-bell)
By Michael Connor
NEW YORK, April 8 The dollar and euro fell
sharply against the yen on Tuesday as hopes for additional
stimulus out of Japan faded, while bargain-hunting on Wall
Street lifted stock prices after three days of losses.
The greenback fell 0.60 percent against other major
currencies, and the decline was felt in other markets. Prices of
oil and gold jumped, and U.S. Treasuries added to two days of
strong price gains after the government sold more debt.
For a second time this week, policymakers from a major
central bank deflated expectations of additional stimulus, with
the governor of the Bank of Japan, Haruhiko Kuroda, saying on
Tuesday there was no need for more monetary support to escape
Investors had expected the BoJ to indicate more support was
forthcoming, and the yen rose as the Bank of Japan kept
its policy steady.
"You had a lot of players who were short the yen, and Kuroda
dashed the hopes of stimulus," said Richard Scalone, co-head of
foreign exchange at TJM Brokerage in Chicago.
The comments from the Bank of Japan came after policymakers
from the European Central Bank on Monday said they would ease
policy further only if they thought the inflation outlook had
Against the yen, the dollar lost 1.4 percent, to 101.52 yen,
the lowest level seen since March 19, when Federal Reserve Chair
Janet Yellen seemed to suggest that U.S. interest rates could
rise earlier than markets expected.
The euro also lost substantial ground against the
yen, falling more than 1 percent to 140.18 yen, the
lowest level since March 28.
The yen marked its strongest one-day gain against the dollar
and its biggest single-day rise against the euro in four weeks,
according to Reuters data.
The dollar index, which measures the dollar against a
basket of six major currencies, was off 0.60 percent and near
lows last seen on March 19.
The dollar has been facing headwinds since the government on
Friday 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 still
struggling to shift into a higher gear, which keeps pressure off
the Federal Reserve to raise rates for a while yet," Joe
Manimbo, an analyst at Western Union Business Solutions in
Washington, said in a note to clients.
On Wall Street stocks rose as investors bought beaten-down
shares of social media and Internet companies.
The Dow Jones industrial average rose 10.27 points or
0.06 percent, to 16,256.14, the S&P 500 gained 6.92
points 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 Amazon.com Inc,
up nearly 3.0 percent at $327.07, Yahoo! Inc, up 2.3
percent at $33.83, and LinkedIn Corp, up nearly 6
percent 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 were
capped by a decline in bank stocks. Goldman Sachs Group
fell 1.3 percent, and JPMorgan Chase & Co slipped 0.3
Aluminum maker Alcoa Inc kicked off the earnings
season after the bell on Tuesday, reporting a first-quarter loss
due to a restructuring charge. But the stock
jumped more than 2 percent in extended-hours trade.
Global stock markets were mixed, with the MSCI world equity
index up 0.35 percent.
U.S. Treasuries prices rose, adding to two days of strong
gains, after the government sold $30 billion in new three-year
notes to better-than-average demand at a high yield of 0.90
percent. It was the first of several auctions this
Benchmark 10-year notes were last up 5/32 in
price to yield 2.68 percent, down from 2.70 percent late on
Monday. Thirty-year bonds gained 12/32 in price to
yield 3.54 percent, down from 3.56 percent.
In commodity markets, gold was trading around
two-week highs, up nearly 1 percent from the previous session at
$1,309.10 an ounce. A traditional safe haven for investors, gold
rose on the sharply lower dollar and renewed tensions between
the United States and Russia over Ukraine.
U.S. crude for May gained 2.1 percent to $102.59 a
barrel, pushed up by the renewed tensions over Ukraine, a major
supply route for Russian gas to Europe. The rise was capped by
expectations U.S. crude oil stocks were building up.
Brent rose $1.89, or 1.9 percent, to $107.71 a
(Reporting by Michael Connor in New York; additional reporting
by Marc Jones in London and Angela Moon, Karen Bretell and
Richard Leong in New York; Editing by Leslie Adler and Dan