GLOBAL MARKETS-Asian shares, euro rise on Greek debt deal

* MSCI Asia ex-Japan rises to near 3-week high, Nikkei up

0.6 pct

* 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

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

near-term bankruptcy.

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

growth-sensitive companies.

"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

seek.

"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.

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