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* Asian shares gain, Nikkei hits four-month high
* Dollar rises against yen and holds firm vs euro
* Gold rises, oil at highest this month
* Japanese govt bonds ease despite record debt issue
By Kevin Yao
SINGAPORE, Dec 28 (Reuters) - Japanese shares hit a
four-month high, leading gains in Asian stocks on growing
investor optimism about the global economy, while the U.S.
dollar held firm against the yen and euro.
Signs of a recovery in the United States also lifted oil
prices to a four-week high.
European stock index futures pointed to a higher open, as
stocks track gains in Asia and in commodities, with futures for
the DJ Euro Stoxx <STXEc1>, for Germany's DAX <FDXc1> and for
France's CAC <FCEc1> were up 0.9-1.1 percent.
The MSCI index of Asia Pacific stocks outside Japan
<.MIAPJ0000PUS> rose just over 0.7 percent in thin trade as
markets in Australia and New Zealand remained shut for
holidays.
The Thomson Reuters index of Asia ex-Japan equities was up
0.6 percent <.TRXFLDAXPU>.
The MSCI index has rallied 65 percent this year, driven by
waves of foreign capital inflows trying to cash in on Asia's
faster-than-expected economic recovery.
By contrast, the Dow Jones industrial average <> has
risen 20 percent while the FTSEurofirst 300 index <> of
leading European shares has gained almost 25 percent.
Chinese stocks led gains, with the Shanghai Composite Index
<> jumping 1.7 percent, lifted by Premier Wen Jiabao's
comments on Sunday that Beijing was committed to seeing through
its stimulus package to help cement the economic recovery.
The Shanghai index has gained 5 percent after falling to a
seven-week low on Tuesday.
"Wen's comments ... gave the market the impression that
China's loose money policy will not change at least for the
first quarter of next year," said a senior dealer at a big
Chinese stockbroker.
"In addition, both the economy and corporate earnings are
improving. Investors feel assured of a decent stock market
performance at least early next year."
NIKKEI AT FOUR-MONTH HIGH
Japan's Nikkei average <> rose 1 percent to its
highest in four months on data showing factory output rising
for the ninth straight month in November and on stable currency
moves.
"The industrial output data was stronger than what the
market had expected and that's reinforcing the positive
sentiment. The stable dollar/yen moves are also making it
easier to pick up exporter shares," said Tsuyoshi Segawa,
equity strategist at Mizuho Securities.
Japan's industrial output rose a more-than-expected 2.6
percent in November, the strongest gain in six months as rising
exports to Asia bode well for a recovering economy.
[]
That followed upbeat U.S. data on Thursday which showed a
drop in initial jobless claims and growth in durable goods
orders.
Meanwhile, Japanese government bond futures slid, taking in
stride the government's announcement late last week that it
plans to issue a record 144.3 trillion yen in treasury debt in
the next fiscal year. []
U.S. and European markets were shut on Friday for
Christmas
after closing at their highest in over a year on Thursday.
The dollar hovered near 91.50 yen <JPY=>, little changed
from Thursday's close and was below a two-month high of 91.88
yen set last week as investors covered short dollar positions
before the year-end.
The euro <EUR=> edged up to $1.4390, off its 3-
