(Updates prices at 0445 GMT)

By Rae Wee

SINGAPORE, April 29 (Reuters) - The yen jumped sharply

on Monday after it slid past 160 per dollar earlier in the

session, leading to speculation that Tokyo could have intervened

in the currency market while the country was out for a holiday.

The yen strengthened about 2% from the initial 159

per dollar level in a matter of a few minutes during Asia hours,

as some traders said selling of dollars was seen 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.

"The move has all the hallmarks of an actual BOJ

intervention and what better time to do it than on a Japanese

public holiday which means lower liquidity in USD/JPY and more

bang for the BOJ's buck," said Tony Sycamore, a market analyst

at IG.

The yen was last 1.9% higher at 155.43 per dollar.

Elsewhere, Asian stocks got off to a positive start ahead of

the Federal Reserve's policy meeting later in the week, while

oil prices ticked down on expectations that higher-for-longer

U.S. interest rates would dampen demand.

MSCI's broadest index of Asia-Pacific shares outside Japan

tacked on 1%, helped by Wall Street's positive

lead on Friday due to a rally in mega cap growth stocks.

The upbeat sentiment spilled over into the new week, with

Nasdaq futures rising 0.36% and S&P 500 futures gaining

0.27%.

Hong Kong's Hang Seng Index similarly advanced 1.3%,

while China's blue-chip index edged 1.4% higher.

The Fed's two-day monetary policy meeting beginning Tuesday

takes centre stage for the week, where expectations are for the

central bank to keep rates on hold.

Focus, however, will be on any guidance for the central

bank's rate outlook, after repeated runs of

stronger-than-expected U.S. economic data and still-sticky

inflationary pressures derailed market bets on how soon the Fed

could commence its rate easing cycle.

Market pricing shows a first Fed rate cut is expected in

September, from a June start only a few weeks ago, with just

over 30 basis points worth of easing expected this year.

"We've seen quite a significant repricing of rate

expectations in the U.S., and that's kind of a benchmark for

global interest rates," said Jarrod Kerr, chief economist at

Kiwibank.

"I think the Fed this week will kind of echo those comments

that rate cuts aren't as close as they had hoped."

The prospect that U.S. rates would remain in restrictive

territory for longer have propped up the greenback, though it

was broadly on the back foot on Monday.

Against the dollar, the euro rose 0.38% to

$1.07315, while sterling gained 0.42% to $1.2548.

The dollar index fell 0.46% to 105.47, though was

headed for a monthly gain of 1%.

In commodities, Brent fell 0.9% to $88.70 a barrel,

while U.S. crude similarly eased 0.85% to $83.14 per

barrel, with news of a potential Gaza ceasefire also easing

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.

Gold dipped 0.21% to $2,332.72 an ounce.

(Editing by Shri Navaratnam and Jacqueline Wong)