* Yen's slide halts just before 100 to dlr
* BOJ action keeps global bond yields near lows
* Benign China inflation data boosts sentiment
* U.S. stocks reflect earnings and China data
NEW YORK, April 9 The yen rallied on Tuesday,
snapping a three-day decline against the dollar and euro as it
neared 100 to the dollar, while a fall in Chinese inflation and
expectations for modest growth in U.S. corporate earnings helped
The Japanese currency weakened to reach 99.66 to the dollar
using Reuters data, the greenback's strongest level against it
since May 2009, before the sell-off in the yen stalled. The euro
peaked at 129.93 yen, its highest since January 2010.
Analysts believe it is only a matter of time before the
dollar sails past the 100 yen mark.
"Given the breadth of yen bearishness, any reprieve would
likely encourage investors to reestablish short yen positions at
more favorable exchange rates," said Joe Manimbo, senior market
analyst at Western Union Business Solutions in Washington, D.C.
The dollar selling on Tuesday left the greenback down 0.5
percent at 98.86 yen, while the euro was off 0.1 percent
on the day at 129.13 yen.
Equity markets were up as investors hoped for more
accommodative monetary policy from China following benign
inflation data, and after U.S. resources giant Alcoa posted
The Dow Jones industrial average was up 24.78 points,
or 0.17 percent, at 14,638.26. The Standard & Poor's 500 Index
was up 2.51 points, or 0.16 percent, at 1,565.58. The
Nasdaq Composite Index was up 6.93 points, or 0.22
percent, at 3,229.19.
A significant driver of the rally has been the extraordinary
stimulus measures from the Federal Reserve, and with the start
of corporate earnings season for the first quarter, investors
will be looking at company forecasts to gauge whether the
fundamentals are strong enough to keep stocks climbing higher,
said Rick Meckler, president of LibertyView Capital Management
in Jersey City, New Jersey.
"The rally will be confirmed if earnings can stay strong and
if companies can continue to thrive even as government spending
is reduced, and I think it will falter if it proves (companies)
are unable to do so," said Meckler.
Alcoa Inc AA.N, the first Dow component to release results,
reported a higher quarterly profit but lower-than-expected
revenue after the bell on Monday. Shares of the largest U.S.
aluminum producer were up 0.3 percent at $8.43