(Updates at 0820 GMT)

By Harry Robertson and Rae Wee

LONDON/SINGAPORE, April 29 (Reuters) -

The yen jumped sharply against its peers on Monday after it

slid past 160 per dollar earlier in the session, with traders

citing dollar-selling intervention by Japanese banks.

Meanwhile, European stocks and U.S. futures rose as

investors looked towards the Federal Reserve's latest decision

on Wednesday and U.S. jobs data on Friday.

The Japanese currency strengthened about 2%

from the initial 159 per dollar level in a matter of a few

minutes during Asia hours, as some traders said they had seen

selling of dollars onshore.

The rapid move came just a few hours after the yen tumbled

to the weaker side of 160 per dollar for the first time in 34

years.

"It does look like intervention," said Francesco Pesole,

currency strategist at ING. "The recipe, hitting that mark of

160, then it looks like a big chunk of intervention delivered at

5 a.m. (London time)... it just makes sense at this point."

He added: "It's a very busy week for markets. I suspect that

they might have intervened today and then hoping that data in

the U.S. and the Fed does not turn too much in favour for the

dollar."

The dollar was last down 1.59% at 155.83 yen, after falling

to an intraday low of 154.54 in early European trading.

Japan's top currency diplomat Masato Kanda told reporters: "I

won't comment now" when asked if authorities had intervened.

In the broader markets, Europe's Stoxx 600 index was

up 0.33% after rising 1.7% last week for its first weekly gain

in a month. Germany's DAX was 0.21% higher while the

British FTSE 100 rose 0.43%.

Investors were digesting the latest national euro zone

inflation data, including Spanish figures which showed price

growth ticked up to 3.4% in April. Data for the bloc as a whole

is due on Tuesday.

U.S. stock futures were also higher, with those for the S&P

500 up 0.22% and for the Nasdaq up 0.34%.

Japan's Nikkei 225 stock index rose 0.81% while

China's CSI 300 climbed 1.11%.

"Sentiment is upbeat at the start of the week, fuelled by

relief that inflationary pressures in the U.S. aren't as bad as

feared, and hopes return that a ceasefire could be negotiated in

the Middle East," said Susannah Streeter, head of money and

markets at Hargreaves Lansdown.

Markets rallied on Friday as Big Tech gains lifted Wall

Street and closely watched inflation data came in as expected on

a month-on-month basis.

The focus of investors on Wednesday will be on whether the

Fed strikes a more cautious tone about rate cuts after a string

of stronger-than-expected data derailed market expectations on

the timing of the first reduction. U.S. nonfarm payroll jobs

data will give more clues about the economy on Friday.

Market pricing shows traders now think the first rate cut

will come in November, from a June start only a few weeks ago,

with 35 basis points worth of easing expected this year.

The prospect of rates staying higher for longer has lifted

U.S. bond yields and boosted the dollar, although both were

lower on Monday.

U.S. 10-year Treasury yields were down 3 basis

points to 4.64%, down from a six-month high of 4.739% last week.

Against the dollar, the euro rose 0.27% to

$1.0721. The dollar index fell 0.33% to 105.61, though

was headed for a monthly gain of 1%.

Brent crude fell 0.72% to $88.88 a barrel as news of

a potential Gaza ceasefire eased fears of supply constraints.

A Hamas delegation will visit Cairo on Monday for talks

aimed at securing a ceasefire, a Hamas official told Reuters on

Sunday, as mediators stepped up efforts to reach a deal ahead of

an expected Israeli assault on the southern city of Rafah.