* China implements previously ordered ratio rise
* Yen sheds earlier losses, surges broadly
* BOJ stands pat, keeps interest rate steady at 0.10 pct
By Masayuki Kitano
TOKYO, Jan 26 (Reuters) - The yen jumped broadly on Tuesday after China implemented a previously ordered rise in some banks' reserve requirements, refocusing attention on China's efforts to rein in its surging economy.
Banking sources said several banks, which were selected by the Chinese central bank to raise their reserve ratios for excessive lending, will see these measures take effect on Tuesday.
It was the latest step by Chinese authorities to curb lending and head off inflation, something that has rattled investors around the world on worries the global economy is not ready for less stimulus.
The dollar fell to as low as 89.82 yen, down from around 90.35 yen when the news came out, and the euro slid by as much as about one yen after the news to a low of 126.85 yen.
"The market reaction shows how vulnerable the market is now to news related to (monetary) tightening in China," said a trader at a Japanese bank.
After trimming some losses, the dollar was down 0.3 percent against the yen at 90.05 yen.
The euro fell 0.6 percent on the day to 127.00 yen.
The yen had slipped broadly earlier, as market players braced for the possibility of yen-selling flows related to the launch of a new Japanese investment trust on Tuesday.
Traders that built long positions in the dollar and the euro against the yen on such expectations were later forced to trim their positions, said a trader at a Japanese trust bank.
The Bank of Japan kept interest rates unchanged at 0.1 percent as widely expected.
The central bank said it will maintain very easy monetary conditions and added that it was important to pull Japan out of deflation. (Additional reporting by Kaori Kaneko; Editing by Joseph Radford)