* Limited reaction seen from ruling bloc loss in Tokyo poll
* Yen to take cues from moves in risk assets like equities
By Masayuki Kitano
TOKYO, July 13 (Reuters) - The yen was little changed against other major currencies on Monday, with traders looking to moves in risk assets like equities and oil to set the market's direction.
The yen showed little reaction early on Monday to the results of a key local election on Sunday, traders and analysts said.
Japanese Prime Minister Taro Aso's ruling bloc was soundly defeated in the Tokyo election seen as a bellwether for a national poll to be held within three months. The election results suggest the main opposition Democratic Party will win more seats in a general election that must be held by October at the latest, said Tohru Sasaki, chief foreign exchange strategist for JPMorgan Chase Bank in Tokyo.
But it is unclear how that would affect Japan's economy, and the impact on the foreign exchange market seems likely to be limited at this point, Sasaki said, adding that the market's focus was on global economic conditions.
A trader for a European bank said the yen was likely to take its cue from how equities perform.
"Equities fell globally last week with U.S. shares falling for the fourth straight week, and the key is whether that will continue," the trader said.
The yen surged last week as equities and oil prices fell as optimism about a speedy recovery in the global economy faded, with investors fretting that a rally in risk assets since March may have been overdone.
The dollar rose 0.1 percent to 92.68 yen, inching away from a five-month low of 91.77 yen hit on trading platform EBS on Friday.
But the dollar dipped against the euro, with the single European currency rising 0.2 percent to $1.3971, regaining some of the ground it lost against the dollar on Friday.
The euro edged up 0.3 percent against the yen to 129.51 yen, having pulled up from last week's EBS low of 127.00 yen, which was the lowest in almost two months.
The yen had risen on Friday, notching its best weekly gain against the greenback since October, and the dollar rose against other currencies amid fears of weak U.S. corporate profits and fading hopes for a global recovery.
A report showing U.S. consumer sentiment soured in early July also boosted the two currencies on Friday. The dollar and the yen can rise if investors sell risky assets such as stocks and commodities and buy back the low-yielding dollars and yen used to finance those purchases. (Additional reporting by Yoshiko Mori; Editing by Hugh Lawson)