GLOBAL MARKETS-Shares rise, investors see brighter US economy

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* MSCI Asia ex-Japan up 0.2 pct, Nikkei opens up 0.2 pct

* Yen hits 5-month low vs euro

* Brighter US economy, growing Euro stability buoyed investors

By Chikako Mogi

TOKYO, March 19 (Reuters) - Asian shares edged higher and the dollar was firm against the yen on Monday with investors buoyed after the U.S. market hit an almost four-year high last week and with higher European stocks reflecting signs of growing stability in the euro zone.

The MSCI Asia Pacific ex-Japan index inched up 0.2 percent, after last week's modest 0.8 percent gain.

Japan's Nikkei opened up 0.2 percent.

On Friday, the benchmark Standard & Poor's 500 Index stayed above the 1,400 level it reached last week for the first time since May 2008, while European stocks hit their highest level since before the market's slump in late July.

The yen was on the defensive in Asia on Monday, hitting a five-month low against the euro of 110.13 yen, and held near an 11-month low of 84.19 yen against the dollar. The euro was near one-week highs at $1.3178.

Currency speculators raised their bets against the yen in the latest week to their highest in 11 months.

"The economic fears that dominated last year have dissipated, and the backdrop of lower economic uncertainty should provide support for risk assets," Barclays Capital analysts said.

But concerns have emerged about Asian growth prospects, and political environment in Europe leading up to French and Greek elections in coming weeks warrant close observation, they said.

"As such, we expect risky assets to continue to hold their own, but given the lingering uncertainties, we prefer to remain close to the beneficiaries of a strong U.S. economy," they added.

The global economy has stepped back from the brink of danger and signs of stabilisation are emerging from the euro zone and the United States, but high debt levels in developed markets and rising oil prices are key risks ahead, the IMF said on Sunday.

U.S. consumer prices rose the most in 10 months in February as the cost of gasoline spiked, but there was little sign that underlying inflation pressures were building up.

">* MSCI Asia ex-Japan up 0.2 pct, Nikkei opens up 0.2 pct* Yen hits 5-month low vs euro* Brighter US economy, growing Euro stability buoyed investorsBy Chikako MogiTOKYO, March 19 (Reuters) - Asian shares edged higher and the dollar was firm against the yen on Monday with investors buoyed after the U.S"Surging gasoline prices put a small dent in consumer confidence early this month, other data showed on Friday.

Oil prices rose more than 2 percent on Friday on support from the continuing tensions over Iran's disputed nuclear program and the potential for supply disruptions in the region.

Brent oil for May delivery rose $3.21 to settle at $125.81 a barrel on Friday. U.S. crude was up 0.3 percent to $107.35 a barrel on Monday, after settling up $1.95 on Friday.

Analysts have said the dollar's strength was underpinned by the rise in U.S. Treasury yields, with benchmark 10-year yields touching four-month highs of 2.36 percent on Friday, on optimism that the economic recovery was gaining momentum undermined the safe-haven allure of U.S. government debt.

The 10-year yields have risen over 25 basis points in a week, which also saw the dollar gain 5 percent against the yen.

Asian credit markets were firmer early on Monday, with the spread on the iTraxx Asia ex-Japan investment-grade index narrowing by 6 basis points.

The European Central Bank's aggressive liquidity injection has soothed fears about credit crunch in the euro zone and stabilised market rates, but wariness persisted about the risk of other highly indebted euro zone countries needing similar debt swaps to Greece.

The cost for banks to borrow three-month, unsecured dollar-based funds posted the first weekly rise in 2012 last week as the positive effects of cheap central bank loans on funding levels appeared to taper off.

In a crucial test to investors' appetite for Europe's rescue fund, the European Financial Stability Facility will take its first stab at selling ultra long-bonds as early as this week.

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