* MSCI Asia ex-Japan rises to near 3-week high, Nikkei up
* Euro rises to one-month high as Greece debt deal reached
* Funds winding down positions seen capping euro upside
* Commodities higher as dollar eases against currency basket
* European shares likely climb
By Chikako Mogi
TOKYO, Nov 27 (Reuters) - The euro hit a one-month high,
commodities rose and Asian shares climbed for a seventh
consecutive day on Tuesday as global lenders reached a deal on
new debt targets for Greece and a political agreement on
disbursing the next installment of aid.
European shares will likely track Asian peers higher, with
financial spreadbetters predicting London's FTSE 100,
Paris's CAC-40 and Frankfurt's DAX to open as
much as 0.7 percent higher.
U.S. stock futures were up 0.3 percent, hinting at a
firm Wall Street open.
After 12 hours of talks at their third meeting in as many
weeks, Greece's international lenders agreed on a package of
measures to cut Greek debt to 124 percent of gross domestic
product by 2020, and pledged to take further steps to lower the
debt below 110 percent of GDP in 2022.
Eurogroup Chairman Jean-Claude Juncker said ministers would
formally approve the release of crucial aid for debt-stricken
Greece, removing uncertainty over whether Athens could avoid a
MSCI's broadest index of Asia-Pacific shares outside Japan
gained 0.7 percent to a near three-week high,
led by a 1 percent advance in Korean shares and a 0.7
percent rise in Australian shares. Indian shares
also jumped 1.2 percent.
Shanghai shares bucked the trend to fell 1 percent
to their lowest since 2009, dragged by weakness in
"Overhanging the market for a little while has been these
macro concerns, so progress towards sorting the situation out
gives room for the market to move higher," said Phillip
Weinberg, director at BestEx.
Investors' focus is likely to shift now to another major
concern hanging over markets, a looming U.S. fiscal crisis.
Republicans in the U.S. Congress on Monday called on
President Barack Obama to detail long-term spending cuts to help
solve the country's fiscal crisis, while holding firm against
the income tax rate increases for the wealthy that Democrats
"Now people will start focusing on the U.S. fiscal cliff and
there could be some nervousness there, particularly if it drags
on," said Burrell & Co dealer Jamie Elgar of Australian shares.
The euro gained as much as about 0.3 percent to
$1.3010, its highest level since Oct. 31, in reaction to the
Greek news, before paring gains to be up 0.1 percent at $1.2982.
"The euro gained but the rise is small, and it's unlikely
that it will climb further, with big funds winding down their
positions ahead of the year-end. Any rise will be countered by
selling to cap the euro's upside," said Hiroshi Maeba, head of
FX trading Japan for UBS in Tokyo.
He cautioned that the euro still faced downside risks as the
latest agreement does not offer a fundamental resolution to the
euro zone's debt crisis.
"While the Eurogroup has set Dec. 13 for formal approval of
the disbursement, and Germany's planned parliamentary vote later
this week will be watched with interest, for markets the deal
should put Greece largely on the backburner for a couple of
months before it starts missing its fiscal targets again," Sean
Callow, senior currency strategist at Westpac bank in Sydney,
said in a note.
He doubted if the euro's short-covering will produce
sustained trade beyond $1.3050/$1.3100.
Japan's Nikkei stock average rose 0.5 percent, just
below Monday's seven-month closing high. The benchmark has
climbed more than 8 percent in two weeks as the yen has weakened
on expectations of easier monetary policy with the likely
election of a new government.
WEAK USD, CHINA HELP COMMODITIES
The dollar inched up 0.2 percent against the yen to 82.22
yen. The euro rose 0.3 percent against the yen to 106.72
Traders said some investors unwound long positions in the
dollar built up in recent weeks on expectations the Bank of
Japan would come under pressure for more aggressive easing.
The dollar eased 0.1 percent against a basket of key
currencies, helping to underpin dollar-based commodities.
U.S. crude futures rose 0.3 percent to $88.03 a
barrel and Brent was up 0.2 percent to $111.09.
Spot gold was up 0.1 percent to $1,749.65 an ounce,
just below a six-week high of $1,754.10 hit on Friday.
London copper hit a near one-month high of $7,821.50
a tonne as the Greek debt deal added to confidence over copper
demand after recent positive data from its top consumer China.
Sentiment may be further underpinned by a report saying
China has approved construction of two city subway projects
worth 49 billion yuan ($7.87 billion), adding to the list of
recent railway project approvals aimed at boosting growth in the
world's second-biggest economy.
In another possible sign that the economy is regaining
traction, China's industrial profits in October were up 20.5
percent from a year earlier, accelerating from 7.8 percent
growth in September.
Asian credit markets firmed slightly, narrowing the spreads
on the iTraxx Asia ex-Japan investment-grade index
by 1 basis point.