(Updates at 1140 GMT)

By Harry Robertson and Rae Wee

LONDON/SINGAPORE, April 29 (Reuters) - The yen jumped

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 as a trigger for its bounce.

Meanwhile, European stocks and U.S. futures inched higher as

investors looked towards the Federal Reserve's policy 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 1.36% at 156.17 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, U.S. stock futures were higher, with

those for the S&P 500 up 0.21% and for the Nasdaq

up 0.31%.

Europe's Stoxx 600 index was 0.23% higher after

rising 1.7% last week. Germany's DAX was flat while the

British FTSE 100 rose 0.5% to trade at fresh record

highs.

Investors in Europe 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.

Japan's Nikkei 225 stock index rose 0.81% overnight

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.

Investors' focus 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 expect the first rate cut

to come in November, rather than in June seen only a few weeks

ago, with 35 basis points worth of easing priced in 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 5 basis

points at 4.624% after they scaled a six-month high of 4.739%

last week.

Against the dollar, the euro rose 0.22% to

$1.0715. The dollar index fell 0.25% to 105.69, though

was headed for a monthly gain of 1%.

Brent crude fell 0.4% to $89.17 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.