FOREX-Yen falls, high-yielding FX up on world c.bank action

* Dollar up 1.9 pct vs yen JPY=, euro up 2.7 pct EURJPY=

* Stocks and Aussie dollar gain as confidence returns

* Market eyes G7 for more action after coordinated rate cuts

* U.S. considers UK-style bank stake plan

(Recasts, adds quotes, changes byline, previous TOKYO)

By Jessica Mortimer

LONDON, Oct 9 (Reuters) - The yen fell broadly on Thursday and high-yielding currencies like the Australian dollar bounced back strongly as confidence tentatively returned to financial markets after the previous day's global coordinated interest rate cuts.

The Federal Reserve, European Central Bank, Bank of England and Switzerland, Canada and Sweden all slashed official rates by a half-percentage point on Wednesday in an attempt to calm the turmoil that has gripped financial markets.

Central banks and governments around the world also took aggressive action to unfreeze paralyzed money markets and get banks lending again. See [ID:nL986589].

This initially failed to boost sentiment or lift stock markets on Wednesday but the mood brightened on Thursday. European shares .FTEU3 gained over 2 percent in early trade and U.S. stock futures pointed to a higher open on Wall Street.

The yen fell from Wednesday's six-month peak against the dollar and three-year high against the euro, as the panic which has seen investors pile into safe-haven assets eased.

Market players were now looking ahead to the meeting of the Group of Seven leaders at the weekend for further action.

"At least some kind of confidence has come back to the market and is supporting high-yielders and putting pressure on the yen," Antje Praefcke, currency strategist at Commerzbank said.

"I wouldn't expect an immediate strong retracement, but at least it should put a stop to all this panic selling," she said.

At 0830 GMT, the dollar was up 1.9 percent against the yen JPY= at 101.17, while the euro EURJPY= jumped 2.7 percent to 138.91 yen.