* Yen falls after finance minister says could intervene
* U.S. stock indexes mixed, dragged down by energy sector
* European shares led by Germany's DAX after strong orders
* U.S. yields fall as rate hike seen more distant
(Updates with open of U.S. markets)
By Lewis Krauskopf
NEW YORK, May 9 (Reuters) - The yen tumbled against the U.S.
dollar on Monday as Japan signalled it was ready to intervene
in the currency market, while a drop in oil prices undercut
stocks.
U.S. stock indexes were little changed, as the energy sector
dragged. Europe's broad stock index gained as data showed German
industrial orders rose more than expected in March.
Most U.S. Treasury yields fell as investors lowered
estimates that the Federal Reserve will raise interest rates in
June, after a weaker-than-expected jobs report.
"Today, really you're seeing just that back-and-forth that
has been here for months: very tight ranges, modest movements
and just a mix between uncertainty and having such low interest
rates that there isn't somewhere else to go," said Rick Meckler,
president of LibertyView Capital Management in Jersey City, New
Jersey.
"There isn't a lot of conviction on the part of global
investors for any of the asset classes," Meckler said.
The Dow Jones industrial average .DJI was down 69.3
points, or 0.39 percent, at 17,671.33, the S&P 500 .SPX was
losing 2.51 points, or 0.12 percent, at 2,054.63 and the Nasdaq
Composite .IXIC was adding 6.48 points, or 0.14 percent, at
4,742.63.
Europe's broad FTSEurofirst 300 index .FTEU3 gained 0.4
percent. Germany's DAX .GDAXI climbed 1.1 percent.
MSCI's world equity index .MIWD00000PUS slipped 0.2
percent after posting its worst weekly performance since
mid-February last week.
The U.S. dollar gained 1.2 percent against the yen, after
the Japanese currency last week hit a 1-1/2 year high against
the greenback.
Japanese Finance Minister Taro Aso said Tokyo is ready to
intervene if yen moves are volatile enough to hurt the country's
trade and economy.
"There is a risk of either currency intervention or BOJ
(Bank of Japan) monetary policy easing in the months ahead, a
risk that is, at least for now, keeping the yen's upside
limited," said Omer Esiner, chief market analyst at Commonwealth
Foreign Exchange in Washington.
Against a basket of currencies, the dollar .DXY gained 0.2
percent.
Oil prices fell as traders took in their stride the impact
of wildfires on Canada's oil output and after another inventory
build at the U.S. hub for crude futures delivery.
U.S. crude CLc1 dropped 2.3 percent to $43.62 a barrel,
while benchmark Brent LCOc1 dropped 3.3 percent to $43.88 a
barrel.
U.S. Treasury yields fell as investors evaluated when the
Fed is likely to raise rates.
Benchmark 10-year notes US10YT=RR were last up 5/32 in
price to yield 1.7613 percent, down from 1.777 percent late on
Friday.
Wall Street's top banks have all but abandoned any
expectation that the Fed will raise interest rates in June, and
most now see the U.S. central bank's next rate hike coming in
September, according to a Reuters survey conducted on Friday.
Copper prices CMCU3 fell 2.1 percent as weak trade data
from China highlighted poor demand growth prospects.