* Aussie hits 7-month highs vs yen, dollar after jobs data
* Aussie April employment jumps against all expectations
* Kiwi up as Q1 unemployment figures were not bad as feared
* Focus on whether ECB will announce unconventional measures
By Satomi Noguchi
TOKYO, May 7 (Reuters) - The yen fell against other major currencies on Thursday, hitting a seven-month low versus the Australian dollar as surprisingly strong regional jobs data boosted hopes that the worst of the global economic crisis may be over.
Gains in Australian employment and better-than-expected unemployment figures from New Zealand stepped up yen-selling momentum that taken an early lead from a flurry of reassuring news about U.S. bank stress tests ahead of their official announcement.
"Risk appetite reigned supreme in Asia as the market continues with its glass half full attitude," said Sue Trinh, senior currency strategist at Royal Bank of Canada.
"The drip feed of bank stress test results which will be formally unveiled after the U.S. markets close later tonight has been absorbed well by the market," she said in a note to clients.
Market focus was turning towards Europe as investors braced for a European Central Bank policy decision later in the day to see how far the central bank will move on possible "alternative measures" to get the euro zone economy back on its feet.
The euro fell against the dollar and touched 10-week trough versus the pound. The ECB is widely expected to cut interest rates to a record low of 1.0 percent, possibly the final cut in the cycle.
The euro fell 0.3 percent to $1.3295, below a one-month high of $1.3439 hit on Tuesday on EBS. It was nearly flat at 131.05 yen in choppy trade below an earlier high of 131.54 yen on trading platform EBS.
The Australian dollar rose as high as 74.63 yen, a seven-month peak according to Reuters data, after data showed Australian employment gained against all expectations and threw doubt on the need for further interest rate cuts.
It later retreated to 74.15 yen, but was still up 1 percent from late U.S. trade on Wednesday.
It climbed 0.8 percent to $ 0.7530 after touching $0.7563, its highest since early October.
The New Zealand dollar was up 0.9 percent to 57.90 yen and rose 0.6 percent at $0.5880 after the jobless rate rose to 5 percent in the first quarter, below market expectations of 5.3 percent.
The dollar rose 0.4 percent to 98.76 yen.
U.S. Treasury Secretary Timothy Geithner said on Wednesday that none of the 19 banks being examined under stress tests are at risk of insolvency. The bank stress tests results are scheduled to be released at 2100 GMT on Thursday.
Regulators have told Bank of America it needs $34 billion of capital, while Citigroup needs $5 billion and auto and mortgage lender GMAC LLC needs $11.5 billion, according to people familiar with the matter.
The pace of private-sector U.S. job losses slowed drastically in April in figures that precede Friday's more comprehensive non-farm payrolls report by the government.
The market also awaits policy announcements by the Bank of England (BoE) later on Thursday.
The BoE is seen holding rates at 0.5 percent, a record low, and likely holding off on announcing fresh plans to boost the supply of credit.
The euro fell as low as 87.65 pence, its lowest since February 24, down 0.4 percent on the day. (Additional reporting by Kaori Kaneko; Editing by Edwina Gibbs)