TOKYO, Japan -- The dollar gained on the yen in Asian trade Monday as expectations grew that US president-elect Barack Obama's stimulus plans would give a boost to the ailing economy, dealers said.

But they said market players were reluctant to buy the greenback heavily ahead of the release of key economic indicators due this week, including Friday's key employment report that is expected to show a wave of layoffs.

The dollar rose to 92.05 yen in Tokyo morning trade, up from 91.79 yen in New York late Friday. The euro gained to $1.3928 from $1.3910 and to 128.15 yen after 127.72.

"High expectations for Obama appear to be supporting US stocks and the dollar, although conditions surrounding the US economy are still pretty negative," said Yosuke Hosokawa, head of forex at Chuo Mitsui Trust Bank.

Traders in Tokyo were relieved that there was no major bad news related to the economic crisis during the New Year holidays, Hosokawa said.

Global stock markets have started 2009 on an upbeat note on hopes the US economy will start to recover this year.

But "it is still unlikely the dollar will continue to rise from current levels as players expect bad job figures" on Friday, Hosokawa said.

"Risk-aversion is expected to continue this year as players are still cautious about the prospects" for the US and global economies, he added.

The dollar fell against the euro on profit-taking after rising on Friday as a widely watched survey showed euro zone manufacturing activity plunging to a record low in December.

Standard Chartered analysts predicted "a broad-based US dollar decline in the first half of 2009" as the economy worsens and the Federal Reserve adopts unorthodox credit measures after slashing interest rates to almost zero.