Global Markets: Asian shares rise

Japan's Nikkei stock average jumped 1.2 percent to a 6-1/2-month high as exporters were lifted by hopes the weakening yen would boost their earnings.

The yen has come under pressure since the Japanese government announced a Dec. 16 election last week.

The opposition Liberal Democratic Party, which is tipped to win, on Wednesday promised a big extra budget and a policy accord with the central bank on aggressive monetary stimulus to prevent the economy from sliding into recession.

The yen fell to a 7-1/2-month low versus the dollar of 82.59 on Thursday, while the yen also hit a 6-1/2-month low of 106.26 yen against the euro.

"Yen, I think, is being driven by anticipation of LDP led government forcing aggressive monetary easing," said Marc Chandler, global head of currency strategy at Brown Brothers Harriman in New York.

Traders said the markets may be capped as activity slows ahead of the U.S. Thanksgiving holiday weekend. Niimura said as hedge funds close their books this month and next, any swing in prices should be seen as more related to their position adjustments than a change in real risk appetite.

GREECE DEAL AWAITED

European shares rose for a third straight session on Wednesday as investors bet on a positive outcome to negotiations over aid to Greece after German Chancellor Angela Merkel said a deal to release emergency aid to Greece was still possible next Monday when euro ministers meet.

The expectations of a Greek

... contd.