* Yen dives in early Asia, USD up more than a full yen
* Nikkei reports BOJ to begin buying longer-dated bonds this
* Stock futures dip on U.S. jobs data disappointment
By Wayne Cole
SYDNEY, April 8 The yen resumed its precipitous
slide early Monday to hit fresh lows against a host of major
currencies as reports the Bank of Japan would begin buying
longer-dated bonds immediately underlined its determination to
Asia-Pacific stock markets were set to open slightly lower,
weighed on by a weaker-than-expected U.S. employment reading
which fuelled concerns that the recovery in the world's largest
economy may be losing steam.
The U.S. dollar jumped a full yen in early Asian trading to
hit 98.78 yen, the highest since June 2009. The euro
climbed as far as 128.32 yen, its highest since
Dealers were impressed by a Nikkei report the central bank
would this week buy 1.2 trillion yen of government bonds with a
maturity of over five years, showing a sense of urgency alien to
the BOJ of old.
Yields on benchmark 10-year Japanese government bonds
sank to a record low of 0.315 percent on Friday.
Analysts assume the flood of new money will be partly used
by Japanese investors to buy higher yielding assets abroad, so
putting downward pressure on the yen.
"We have re-established a broad basket of JPY shorts in
light of last week's BOJ aggressive actions," wrote analysts
from JPMorgan in a client report. "Radical monetary measures
were needed to re-invigorate the downtrend in the yen, and on
this front the BOJ has over delivered."
JPMorgan had re-established long positions in USD/JPY and
also favoured the Australian dollar and Brazilian real as carry
trades against the yen.
The Aussie dollar soared to 102.32 yen, the
highest since July 2008.
Australian stocks were set to open marginally lower, while
New Zealand's market fell 0.1 percent in early trade,
out-performing global stock market losses following Friday's
U.S. non-farm payrolls report.
U.S. employers hired at the slowest pace in nine months in
March, adding just 88,000 nonfarm jobs, the Labor Department
said, below an expected 200,000. The jobless rate ticked a tenth
of a point lower to 7.6 percent, but the drop was largely due to
people dropping out of the work force.
The soft jobs report also weighed on energy and industrial
metals, with Brent crude futures hovering near an
eight-month low hit on Friday and copper also in sight
of its lowest since August 2012.