NEW YORK, Oct 9 (Reuters) - Major stock indexes eased on Thursday, while the dollar climbed to its highest level against the Japanese yen since mid-February as investors weighed the outlook for Japan's fiscal policies.
Stocks have been mostly rising in recent sessions, with the S&P 500 hitting a record closing high on Wednesday, despite an ongoing U.S. government shutdown and political risk in Japan and France that has made investors nervous.
The euro was also down again against the dollar on Thursday.
Oil prices fell, with investors weighing a ceasefire deal in Gaza that could ease Middle East tensions against stalled peace talks in Ukraine.
Safe-haven demand and a weaker dollar drove gold above $4,000 an ounce for the first time this week. Spot gold was last down 1.6% at $3,973.10.
The newly elected leader of Japan's ruling party, Sanae Takaichi, said she did not want to trigger excessive declines in the Japanese currency. The dollar briefly eased against the yen after the comments.
The greenback was last up 0.24% at 153.04 yen after earlier reaching 153.21, the highest since February 13.
In the U.S., the federal government shutdown, which began last week, has left investors without key economic reports.
Despite Thursday's weakness, the stock market remains buoyant, said Adam Sarhan, chief executive of 50 Park Investments in New York, adding that stocks could weaken if the government shutdown lasts for a substantial period of time.
"We're in a very strong bull market that refuses to fall in a meaningful fashion," he said. "I'm expecting a pullback at some point but for now the environment is very strong."
The Dow Jones Industrial Average (.DJI), fell 297.20 points, or 0.63%, to 46,306.65, the S&P 500 (.SPX), fell 27.40 points, or 0.40%, to 6,726.41 and the Nasdaq Composite (.IXIC), fell 62.14 points, or 0.27%, to 22,981.65.
JPMorgan Chase (JPM.N), CEO Jamie Dimon said there was a heightened risk of a significant correction in the U.S. stock market within the next six months to two years, citing factors including geopolitical tensions, government spending and remilitarization around the world.
MSCI's gauge of stocks across the globe (.MIWD00000PUS), fell 4.38 points, or 0.44%, to 991.73. The pan-European STOXX 600 (.STOXX), index ended 0.43% lower, by steep losses in HSBC (HSBA.L), and Ferrari (RACE.MI), opens new tab.
French bonds held on to gains from the day before on optimism the country can avoid a snap election. French President Emmanuel Macron’s office said on Wednesday he would appoint a new prime minister within 48 hours.
France's 10-year bond yield was 0.2% higher on the day at 3.529%. The euro was last down 0.64% at $1.1552.
U.S. crude futures fell $1.04 to settle at $61.51 a barrel and Brent declined $1.03 to settle at $65.22.
The yield on benchmark U.S. 10-year notes rose 1.5 basis points to 4.146%, from 4.131% late on Wednesday.
Additional reporting by Elizabeth Howcroft in Paris, editing by Ed Osmond, Kirsten Donovan, Nia Williams and Aurora Ellis
