* Dollar dips vs yen but still near 100 threshold
* Wall St gains on earnings, tech sector
* Gold jumps over 2 pct, rebounding from last week's tumble
By Angela Moon
NEW YORK, April 22 World equity markets rose on
Monday, erasing earlier losses as Wall Street attempted a
rebound after its worst weekly decline this year, while the
dollar slipped against the Japanese yen but remained within a
hair's breadth of the key 100 level.
U.S. stocks were higher in afternoon trade, reversing an
earlier decline on strength in technology shares. Microsoft
jumped nearly 4 percent, boosting both the Nasdaq and
the S&P 500.
But the day's biggest gainers were in cyclical sectors,
groups closely tied to the pace of economic growth. Last week,
concerns about growth sparked steep declines in cyclical
"Ultimately, we think cyclical names will lead the market
higher, but in the short term, the decline could
continue," said Eric Green, senior portfolio manager at Penn
Capital Management in Philadelphia, who said that cyclical
stocks were oversold.
In the currency market, the dollar climbed as high as 99.88
yen, according to Reuters data, within striking distance of a
four-year high of 99.94 set on April 11 and the 100 level, where
option barriers are said to be lined up. It last traded at 99.28
yen, down 0.2 percent on the day.
Japanese officials said that the Group of 20 nations
accepted that the country's $1.4 trillion stimulus program is
aimed at conquering 15 years of deflation rather than at
weakening the yen.
"The lack of pushback by the G20 effectively gives the BOJ
room to ease further if needed and should keep the yen biased
broadly lower," said Omer Esiner, chief market analyst with
Commonwealth Foreign Exchange Inc in Washington, DC.
The G20's actions removed any remaining obstacles to further
yen weakness, setting up a test of the symbolic 100 yen to the
dollar level and boosting demand for Japanese stocks.
Major central banks have been holding interest rates at
rock-bottom levels since 2008 while pumping over $6 trillion
into their banking systems through loans and asset-purchase
operations, with only modest success so far.
The euro remained vulnerable against the dollar on central
bank expectations. The single currency last traded at $1.3048
, flat on the day.
Technical analysts at SEB said that a break below $1.3026
would likely "trigger a new round of selling" in the euro, with
the next support then seen at $1.3001.
CATERPILLAR, HALLIBURTON GAIN
On Wall Street, Caterpillar Inc and Halliburton ranked among
the S&P 500's biggest gainers after reporting results.
Caterpillar shares were up 3 percent at $82.82 and
Halliburton rose 6 percent to $39.35.
European shares ended higher as signs of progress to break
political stalemate in Italy outweighed fresh downbeat earnings
news and concern over the health of the global economy.
Milan's FTSE MIB index, up 1.7 percent, proved the
regional outperformer for most of the day after the re-election
of Italy's president. Broad agreement among various political
groups raised the prospect of an end to two months of stalemate
after an inconclusive election.
The broad FTSEurofirst 300 index rose 0.2 percent.
The Dow Jones industrial average was up 21.40 points,
or 0.15 percent, at 14,568.91. The Standard & Poor's 500 Index
was up 7.90 points, or 0.51 percent, at 1,563.15. The
Nasdaq Composite Index was up 29.29 points, or 0.91
percent, at 3,235.35.
MSCI's world equity index added 0.4 percent.
In commodity markets, gold rebounded from its sharp selloff
last week, though sentiment remained shaky after the precious
metal posted its biggest-ever daily loss in dollar terms last
Spot gold rose more than 2 percent to a session-high
of $1,438.66 per ounce, more than $100 above the two-year low of
$1,321 hit on April 16.
Brent crude futures edged up to hover above $100, extending
gains from the two previous sessions as cheap prices from last
week's selloff drew buyers back into the market.
June Brent crude settled at $100.39 a barrel, up 74
cents. The May U.S. contract rose 75 cents to $88.76
after reaching a high of $89.13.
In Treasuries, the benchmark 10-year U.S. Treasury note
was up 2/32, with the yield at 1.6963 percent.