REFILE-GLOBAL MARKETS-Stocks mixed after major U.S. indexes hit 5-year highs

* BOJ makes open-ended commitment to buy assets from 2014

* MSCI world share index hits new 20-month high

* Yen falls briefly after BOJ but then reverses course

* Oil and gold edge higher

By Ellen Freilich

NEW YORK, Jan 22 (Reuters) - U.S. stocks were mixed on

Tuesday after major Wall Street stock indices hit five-year

highs and Japan promised a program of open-ended monetary easing

to revive its listless economy.

Analysts said investors held back on making large bets

before a batch of corporate earnings. Both the Dow and S&P 500

closed at their highest levels since December 2007 on Friday,

spurred by a strong start to earnings season.

In early dealings in New York, the Dow Jones industrial

average was down 6.15 points, or 0.05 percent, at

13,643.55. The Standard & Poor's 500 Index was down 1.62

points, or 0.11 percent, at 1,484.36.

The Nasdaq Composite Index was down 2.52 points, or

0.08 percent, at 3,132.18.

U.S. markets were closed on Monday for a public


Despite stronger-than-expected financial results from

major companies, including big banks, at the start of the

quarterly reporting season, many investors are worried that

other earnings reports will reflect economic uncertainty in the

fourth quarter.

A flare-up of concern about Germany's banks had limited

impact. Safe-haven U.S. debt was down in price and benchmark

10-year yields rose to 1.87 percent from 1.85 percent late on

Friday, before a three-day holiday weekend.

The Bank of Japan, which has been under intense political

pressure to overcome deflation and generate growth, hiked its

inflation target to 2 percent and said that from 2014 it would

adopt an open-ended commitment to buy assets.

The move surprised markets, which had expected another

incremental increase in its 101 trillion yen ($1.12 trillion)

asset-buying and lending programme, though the delay before the

easing measures kick in dulled the impact and saw the yen edge

higher against the dollar.

European shares, testing two-year highs in recent days, were

choppy as markets latched on to a report that German regulators

were simulating a separation of some banks' operations, and on

rumors - later denied - that Deutsche Bank was

preparing a profit warning.

Frankfurt's DAX fell as much as 1.4 percent on the

talk but then erased about half of that loss.

The pan-European FTSEurofirst 300 was down just 0.1

percent on the day at 1,165.

This is a busy week for U.S. earnings, with Google Inc

, IBM, and Texas Instruments all on tap

to report Tuesday. Tech earnings will be a particular focus

after a disappointing sales outlook from Intel Corp

last week.

A better-than-expected reading from the German ZEW investor

sentiment index helped the recovery in European shares. It rose

sharply for a second consecutive month in January in a sign that

the euro zone crisis is no longer hitting Europe's largest

economy as hard as in late 2012.

"There was a slight scare in Germany this morning which we

saw particularly in the euro/dollar move but we have more or

less recovered from that now," said Rabobank strategist Philip


"The market is now looking to the U.S. open and today's

data. The Richmond Fed index could underline the uncertainty

businesses are facing not only from abroad but also from Capitol

Hill (budget negotiations). But hopefully the homes sales data

will be the more positive story."

Equity markets, particularly in Japan, had risen strongly in

the run-up to Tuesday's BOJ meeting, and the confirmation of the

central bank's plans was enough to lift the MSCI world index

0.15 percent to a fresh 20-month high of 352.54

before momentum waned.

Brent crude rose 0.4 percent to $112.20 a barrel,

and gold was up 0.2 percent as the BOJ's easing action

added to recent positive data from the United States and China,

while growing confidence in the strength of China's economic

recovery pushed copper up 0.5 percent to $8,100 a tonne.


General market sentiment was also supported by signs of a

compromise to avert a U.S. fiscal crisis.

Republican leaders in the U.S. House of Representatives have

scheduled a vote on Wednesday on a nearly four-month extension

of U.S. borrowing capacity, aimed at avoiding a fight over the

looming need to raise the federal debt ceiling.

Bond market investors also gobbled up a new 10-year Spanish

bond, its first since November 2011, as the latest evidence of

rising confidence following the European Central Bank's promise

to buy Spain's bonds if necessary.

Last week, Rome sold 6 billion euros of its first 15-year

bond in more than two years, and Spain's Economy Minister Luis

de Guindos said Tuesday's sale by his country drew estimated

demand of around 24 billion euros, describing the sum as


A government source close to the deal said Madrid would,

however, sell no more than 7 billion euros so as to leave

appetite in the market.

"I'm under the impression that the (Spanish) Treasury is

making the most of a benign market to increase its liquidity for

whatever comes in the future," said Estefania Ponte, economist

at Cortal Consors.


The upbeat German ZEW release, which put German investor and

analyst morale at a 2-1/2 year high, prompted a fall in German

government bonds and lifted the euro out of

slide caused by the German bank jitters.

The single currency remained down 1 percent on the day

against the yen at 118.3 yen, however. Disappointment

that there will be no immediate BOJ easing saw the yen

strengthen across the board.

The dollar also fell 1 percent against the yen to a session

low of 88.365 yen.

"There was some disappointment in markets that the BOJ would

start their open-ended bond purchases only in January 2014, so

we see some profit taking in dollar/yen," said Bernd Berg,

global FX strategist at Credit Suisse.

In Britain, sterling fell for the fifth straight session to

hit an 11-month low against the euro, weighed down by a bleak

outlook for the economy and public borrowing figures that

reinforced fears it could lose its prized triple-A rating.

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