* Asia shares rally on Wall St bounce, China stimulus
* Yen retreats against dollar, euro as Nikkei jumps 5.5%
* Aussie jumps more than 2% vs dollar
By Shinichi Saoshiro
TOKYO, Nov 10 (Reuters) - The yen fell against the dollar and euro on Monday as Asian shares were lifted by strong Wall Street gains and by China's launch of a huge economic stimulus plan.
The yen had initially risen against the dollar on Friday following weak U.S. employment data for October, but gave back the gains and retreated on a strong bounce by Wall Street later in the day.
"The market's main focus is on equities after the dollar was not sold off against the yen despite discouraging U.S. employment figures," said Hideaki Inoue, chief manager of forex trading at Mitsubishi UFJ Trust Bank.
"The yen's resulting weakness is supporting the euro as well. With the employment data out of the way the main concern for the market is how U.S. monetary and fiscal policies play out," Inoue said.
The dollar rose to 99.09 yen, up 0.9 percent from late U.S. trading on Friday.
The euro gained 2.1 percent to 127.60 yen. Against the dollar, the euro rose 1.3 percent to $1.2877.
The Nikkei share average surged 5.5 percent, buoyed by a Wall Street rebound on Friday that was bolstered by hopes for economic policy to be announced by U.S. President-elect Barack Obama.
Asian equity markets were also boosted after China announced an economic stimulus package on Sunday worth nearly $600 billion in what could mark the start of a round of big spending or interest rate cuts by leading economies to stave off recession in many countries.
Share prices are regarded as a barometer of investors' risk appetite, and their rise can halt unwinding of carry trades, which involve selling of low-yielding currencies like the yen to invest in higher-yielding currencies and assets.
The Australian dollar jumped 2.55 percent to $0.6916 as risk appetite improved on the rise in Asian shares and the Chinese stimulus package. (Editing by Michael Watson)