GLOBAL MARKETS-Stocks bounce, yen gains vs dollar; talk of BOJ policy tweak

Dow Jones Industrial Average +0.23%
Apple Inc. -0.60% Pre
S&P 500 index +0.80%
NASDAQ +1.14%

Apple Inc.

AAPL

179.66

178.35

-0.60%

-0.73% Pre

Dow Jones Industrial Average

DJI

39087.38

+0.23%

S&P 500 index

SPX

5137.08

+0.80%

NASDAQ

IXIC

16274.94

+1.14%

U.S. stocks rally in afternoon trading

Oil prices fall as investors monitor Mideast developments

Fed, BoE and BOJ all hold meetings this week

Updates with closing oil prices, stock levels

By Caroline Valetkevitch

- Global stock indexes rose on Monday, with U.S. stocks rallying more than 1% after recent sharp declines, while the yen rose to a two-week high against the dollar after a report that the Bank of Japan is considering tweaking its yield curve control policy.

Oil prices settled more than 3% lower, partly as fears eased about the Israel-Hamas war disrupting supply from the region.

The Nikkei report, that the BOJ is considering adjusting its yield curve control policy to allow the 10-year Japanese government bond yield to rise above 1%, pushed the yen to 148.81 per dollar, its strongest level since Oct. 17.

The greenback was last down 0.4% at 149.05 yen JPY=EBS.

The BOJ kicked off its two-day monetary policy meeting Monday. The recent surge in global interest rates has heightened pressure on the BOJ to change its bond yield control policy.

The Federal Reserve and Bank of England are also meeting this week. The U.S. monthly jobs report is due on Friday.

"If the BOJ does not do anything tomorrow, which I think that's what economists expect and just wait until December, I think the dollar jumps right back versus the yen," said Marc Chandler, chief market strategist at Bannockburn Global Forex in New York.

The dollar index =USD fell 0.469%, with the euro EUR= up 0.51% at $1.0618.

Stock investors also are closely monitoring quarterly earnings, with several big companies including Caterpillar CAT.N and Apple AAPL.O due to report this week.

The Dow Jones Industrial Average .DJI rose 510.78 points, or 1.58%, to 32,928.37, the S&P 500 .SPX gained 49.41 points, or 1.20%, at 4,166.78 and the Nasdaq Composite .IXIC added 146.47 points, or 1.16%, at 12,789.48.

Stocks posted losses for last week as economic data seemed to support the "higher for longer" interest rate scenario.

The pan-European STOXX 600 index .STOXX rose 0.36% and MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.87%.

Benchmark 10-year note yields US10YT=RR were last at 4.88%, up on the day. They are holding just below a 16-year high of 5.021% reached last Monday.

In energy, U.S. crude CLc1 fell $3.23 to settle at $82.31 a barrel, while Brent LCOc1 dropped $3.03 to $87.45.

Spot gold XAU= dropped 0.4% to $1,997.86 an ounce.


(Reporting by Caroline Valetkevitch; additional reporting by Gertrude Chavez-Dreyfuss in New York and by Elizabeth Howcroft in London; Editing by Mark Potter and Jonathan Oatis and Richard Chang)

((caroline.valetkevitch@thomsonreuters.com))

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