* Global stocks gauge edges higher
* U.S. indexes pull back after hitting records
* Dollar up sharply against yen (Updates with opening of U.S. markets; changes dateline)
By Lewis Krauskopf
NEW YORK, Aug 8 (Reuters) - The U.S. dollar rallied against the yen on Monday amid firming bets of a U.S. interest rate hike later this year, while oil prices jumped nearly 3 percent to extend recent gains as speculation grew that OPEC would try to restrain output.
The MSCI All-Country World equity index .MIWD00000PUS rose 0.3 percent, helped by emerging markets and stocks in Asia. U.S. equity indexes dipped after the S&P 500 and Nasdaq closed at new record highs Friday in the wake of a strong July U.S. jobs report.
"The dollar took a big boost from the jobs numbers ... and there is a part of the market that expect that to follow through into retail sales on Friday," said Citi strategist Richard Cochinos. "But really it's August trading at the moment and we're struggling to find clear drivers."
The Dow Jones industrial average .DJI fell 21.02 points, or 0.11 percent, to 18,522.51, the S&P 500 .SPX lost 1.63 points, or 0.07 percent, to 2,181.24 and the Nasdaq Composite .IXIC dropped 11.58 points, or 0.22 percent, to 5,209.55.
U.S. equities have pushed higher amid a better-than-expected corporate earnings season, and will take their cues this week from the results of several consumer companies.
"I think the market is just kind of taking a breather at this point," said Walter Todd, chief investment officer at Greenwood Capital in Greenwood, South Carolina. "There's just not a whole lot of news flow to push it one way or the other."
The pan-European STOXX 600 index .STOXX slipped 0.1 percent. European bank stocks .SX7P gained, helped by an upgrade for shares of Barclays BARC.L .
The dollar .DXY edged up 0.2 percent against a basket of currencies, rising for a fourth straight session. Against the yen, the dollar gained 0.7 percent JPY= . employment report showed U.S. nonfarm payrolls rose by 255,000 jobs in July, more than the Reuters forecast of 180,000. Traders are now basically split on whether the Federal Reserve will raise rates at its December meeting, according to the CME Fedwatch tool. seeing the aftermath of the (payrolls) last week," said Mark McCormick (NYSE:MKC), North American head of FX strategy at TD Securities in Toronto.
Oil prices jumped nearly 3 percent amid renewed speculation that OPEC would try to restrain output, easing oversupply worries had pressured the market to three-month lows last week. West Texas Intermediate (WTI) crude CLc1 was up $1.15, or 2.8 percent, at $42.95 per barrel, while Brent crude LCOc1 rose $1.05, or 2.4 percent, to $45.32.
Yields on U.S. Treasuries with longer-dated maturities edged up to their highest in more than two weeks on bets the Fed could raise rates by year-end. 10-year Treasury notes US10YT=RR fell 1/32 in price to yield 1.5833 percent.