Of the Nikkei 225 shares, 206 gained, 15 declined, and 4 were unchanged. Meiji Dairies led advancers with a surge of 14.26%, largest jump in seven years after it suggested retail price increase of 58 types of dairy products between 3% and 10% in March 2008 The company blamed higher import cost.

Japan''s Ministry of Economy, Trade and Industry said today industrial production increased a seasonally adjusted 1.6% in October from a 1.4% decline in September, buoyed by rising production of semiconductor-making equipment and automobiles.

According to METI the index of output at mines and factories stood at 112.1.

The Federal Reserve Vice Chairman Donald Kohn comments suggested that recent financial markets volatility and economic conditions should be taken into consideration while reviewing interest rate policy. The comments reinforced investors expectations that interest rates are likely to be lowered between 25 and 50 basis points at the next meeting on Dec 11th.

Of the Nikkei 225 index shares, Meiji Dairies led the advancers with a rise of 14.26% followed by rises in Asahi Glass Co of 8.38%, in Tokai Carbon Company of 8.29%, in Nippon Sheet Glass of 7.86%, and in Fujitsu Limited of 7.66%.

Asahi Glass Company and Nippon Sheet Glass surged after the European Union charged the two glassmakers a smaller-than-projected 205 million euros fine for the price fixing.

Nippon Sheet Glass in particular had made a provision of 350 million pounds for the fines.

Exporters and financials climbed as the yen weakened to 110.31 from 108.41 yesterday against the dollar and stocks rallied and expectations that the U.S. rates may be lowered. Canon rose 3.17%, Komatsu climbed 3.93% and Toyota Motor Corporation firmed 3.17%.

Mitsubishi UFJ Financial group rose 6.11%, Mizuho Financial Group gained 4.67% and Mitsui Sumitomo Financial Group firmed 2.30%.

West Japan Railway Co. led decliners, falling 3.04%, followed by declines of 2.06% in Secom Company Limited, 1.77% in Inpex Holdings, 1.07% in East Japan Railway and 0.96% in Shionogi &Company.

3:00AM New York, 7:00PM Sydney - The Australia index gained 1.2% after positive trade led by banks.

ASX 200 index gained 1.2% or 74.4 to close at 6,370.10. Australia and New Zealand Bank added 0.5% and Commonwealth Bank of Australia edged higher 1.1%.

National Australia Bank announced that it is exploring to acquire Great Western Bancorporation, for A$898.5 million. The bank, the subsidiary of the U.S. based Great Western Bank, a regional bank based in Sioux Falls, South Dakota.

The U.S. bank has a network of more than 100 branches across six states, mostly in the mid-west agricultural region and employs around 800 people with more than $3.4 billion.

Stewart said his company intended to use the acquisition as a springboard to accelerate the organic growth strategy for their agribusiness relationship-banking model into the U.S.A.

The Bank is also active in the commercial lending, wealth management distribution and insurance agency sectors. The Hamann family has owned great Western Bancorporation for more than 35 years.

Stewart said the Great Western Bank would become a part of NAB''s development and new business division managed by George Frazis.

BlueScope Steel jumped nearly 4.4% after the management made presentation to analysts.

Paul O''Malley, who took over as CEO on the November 1st outlined several new initiatives and outlined three year strategy and restructuring of businesses in China and Vietnam.

BlueScope Steel is likely to sell its underperforming metallic coating business in China and is reviewing the future of its Vietnamese operation. O''Malley said today the Suzhou metal coating facility in China was performing well but would struggle to break-even.

O''Malley said the company was committed to China, where it also operates a building division, but the company is looking to sell metal coating business. O''Malley said margins were coming under pressure from the high price of raw materials.

Elsewhere, BlueScope said it Vietnamese operation, which manufacturers coated and pre-painted products for the construction market, would also be reviewed.