FOREX-Yen falls broadly, hits 6-mth low vs dollar, euro

* Yen falls broadly, risk demand improves on higher stocks

* Dollar rises above 101 yen, highest since Oct 2008

* Dollar pressured vs euro, sterling

(Adds quotes, updates prices)

By Naomi Tajitsu

LONDON, April 6 (Reuters) - The yen fell broadly on Monday, hitting its weakest against the dollar and the euro in nearly six months as investors took on perceived riskier assets on the view that a global economic downturn may have hit a bottom.

The dollar rose as high as 101.45 yen, according to Reuters data, vaulting above 101 yen for the first time since last October, while the euro climbed as high as 137.43 yen, a level last seen roughly half a year ago. Analysts said that a 1.2 percent rise in European shares .FTEU3 was the catalyst of weakness in the yen, which extended losses made in Asian trade.

"As long as stocks can retain their buoyancy ... risk appetite and risk-based trades will be in vogue and investors will continue to add to and rebuild yen short positions," said Jeremy Stretch, currency strategist at Rabobank in London.

Still, he added that market participants were cautious about whether the rebound in risk appetite would last, due to the ongoing uncertainty about whether weakness in the global economy has peaked.

By 1027 GMT, the dollar was up 1 percent at 101.25 yen JPY=.

A move above 101.00 yen was technically significant as it was a 38.2 percent Fibonacci retracement of its decline from a peak in 2007 to its 13-year low in January.

The euro EURJPY=R trimmed some of its earlier gains against the yen, but still traded 1.1 percent higher at 136.70 yen.

The dollar extended its gains against the Japanese currency after data on Friday showed U.S. firms shed another 663,000 jobs in March, while the unemployment rate soared to 8.5 percent.

While the data was grim, U.S. stocks ended higher, and prior data was revised to show job losses of 741,000 in January, which some saw as possibly the bottom of the job loss cycle.

"Markets are taking heart that the pace of economic contraction is fading," said Lee Hardman, currency economist at Bank of Tokyo-Mitsubishi UFJ in London. "That is helping risk assets and prompting the unwinding of safe assets, namely the yen and dollar."