* Dollar drops against yen as BoJ says more stimulus not
* Wall Street rebounds, led by social media and Internet
* U.S. Treasuries prices flat ahead of debt auction
* Oil up more than $1 a barrel
(Updates with U.S. midday trading)
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.
U.S. Treasury prices were generally flat after recent gains.
For the second time this week, policymakers from a major
central bank cut short expectations for additional stimulus,
with the governor of the Bank of Japan, Haruhiko Kuroda, saying
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 followed remarks on
Monday by several policymakers from the European Central Bank
that they would ease policy further only if they thought the
inflation outlook had deteriorated sharply.
Against the yen, the dollar lost 1.1 percent to hit a 10-day
low of 101.94 yen, while the euro also shed 1 percent to
140.62 yen, the lowest level since March 28.
The yen had been under pressure in recent days on
expectations that a rise in Japan's sales tax, which took effect
at the start of April, would hurt consumption, and that the BoJ
might ease policy in coming months to soften the blow.
The dollar index, which measures the dollar against a
basket of six major currencies, was off 0.57 percent and near
lows last seen on March 19.
The dollar has been facing headwinds since Friday, when a
report showed the U.S. economy added 192,000 jobs in March, down
from about 200,000 in February, according to analyst Joe Manimbo
at Western Union Business Solutions in Washington.
"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," Manimbo
said in a note to clients.
On Wall Street, the Dow Jones industrial average rose
37.59 points or 0.23 percent, to 16,283.46, the S&P 500
gained 8.73 points or 0.47 percent, to 1,853.77 and the Nasdaq
Composite added 37.575 points or 0.92 percent, to
Investors bought beaten-down shares of social media and
The day's biggest gainers included Amazon.com Inc,
up nearly 3.0 percent at $326.77, Yahoo! Inc, up 3.2
percent at $34.14, and LinkedIn Corp, up 4.3 percent to
$166.50. The Global X social media index rose 2.8
percent to $18.59.
The U.S. earnings season gets under way this week. Aluminum
producer Alcoa Inc will report after the market close on
Tuesday. Financials JPMorgan Chase & Co and Wells Fargo
& Co will issue results on Friday.
Global stock markets were mixed, with the MSCI world equity
index up 0.38 percent.
U.S. Treasuries prices, after two days of strong gains, were
flat ahead of a $30 billion three-year note sale, the first of
$64 billion in new coupon-bearing supply this week.
Investors turned their attention to the impending supply and
considered whether the yields would be attractive enough in the
auctions after the recent rally.
Benchmark 10-year notes were last up 2/32 in
price to yield 2.686 percent. Thirty-year bonds rose
6/32 in price to yield 3.548 percent.
In commodity markets, safe-haven gold was trading
around two-week highs, up nearly 1 percent from the previous
session at $1,309.10 an ounce.
U.S. crude for May gained 1.9 percent to $102.35 a
barrel, pushed up by the renewed tensions over Ukraine, a major
supply route for Russian gas to Europe. But the rise was capped
by expectations U.S. crude oil stocks were building up.
Brent rose $1.63, or 1.5 percent to $107.45 a
(Reporting by Michael Connor in New York; additional reporting
by Marc Jones in London; Editing by Leslie Adler and Dan