Global Markets: Asian shares up with eye on fiscal cliff, yen slips more

Economists warn that the "fiscal cliff" of higher taxes and spending cuts worth $600 billion could hurl the world's largest economy into recession, dragging other economies with it.

Such concerns underpinned the dollar as the fiscal impasse continues to sap investor appetite for risky assets, raising the dollar's safe-haven appeal.

"Most risk assets will probably remain range-bound until we get a clearer indication of what to expect from the fiscal cliff negotiations," said Stan Shamu, a strategist at IG Markets.

There were some signs of economic improvement in the Asian region, with data showing profits earned by China's industrial companies jumped 22.8 percent in November from a year earlier, accelerating from October's 20.5 percent.

London copper rose 1.7 percent to a one-week high of $7,932 a tonne on the positive data from China, the world's top copper buyer.

U.S. crude futures inched up 0.2 percent to $91.14 a barrel on hopes the new Japanese government's policies would spur demand. Brent crude steadied at $111.03. However, South Korea warned on Thursday of only a modest recovery in the economy next year. India's economic growth could get stuck at 5-5.5 percent if a policy logjam continues, said Montek Singh Ahluwalia, a key policy adviser to Prime Minister Manmohan Singh.

YEN SALES ACCELERATE

Against the yen, the dollar at 85.87 yen reached its highest since September 2010, with investors accelerating their yen sales after new Japanese Prime Minister Shinzo Abe said his government would pursue bold monetary policy, flexible fiscal policy and

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