(Repeats for more subscribers)
* Asian stocks at 2-yr high after U.S. data, Europe just up
* Nikkei closes up 1.39 percent
* Dollar at 5-month low vs euro, dips vs Asian currencies
By Ron Popeski
SINGAPORE, Sept 27 (Reuters) - Asian stocks climbed on Monday to their highest in more than two years in response to encouraging U.S. economic data while the dollar recovered some ground after plumbing five-month lows against the euro.
European shares edged higher, after they rose sharply in lock-step with Wall Street in response to a rise in U.S. business spending. Investors saw the numbers as a sign that the world's biggest economy continued to recover, though analysts said high unemployment and sluggish housing market suggested the Federal Reserve might further resort to quantitative easing to give the economy a leg up.
Such expectations weighed on the dollar. It lost ground to several currencies, but edged up against the yen on speculation that Tokyo may sell the Japanese currency again to curb its gains.
The index of Asian stocks ex-Japan <.MIAPJ0000PUS> climbed
1.25 percent, hitting its highest point since June 2008. In
Tokyo, the benchmark Nikkei
Shares of consumer lenders plunged after media said struggling Takefuji Corp <8564.T. was preparing to file for bankruptcy protection. [ID:nTOE68PO18].
In Europe, the FTSEurofirst 300 <.FTEU3> index of top
European shares was up 0.4 percent after spiking up 1.2 percent
on Friday. Food and beverage shares were up on news Unilever
In Asia, Seoul stocks <.KS11> closed 0.8 percent higher with Hyundai Motor, South Korea's top carmaker steady after announcing a recall of 139,500 Sonata sedans sold in the United States.
RISE IN BUSINESS SPENDING
Economic reports on U.S. durable goods orders and home sales were mixed on Friday, but traders focused on a rise in business spending in August as the latest sign of a firmer recovery.
Wall Street rose almost 2 percent, putting U.S. stocks on course for four weeks of gains.
But subdued home sales and signs that manufacturing growth was slowing reinforced the view that the Fed may provide more monetary support to help the economy.
On Monday, the dollar regained some lost ground against the yen but was sharply down against other Asian currencies.
With the end of Japan's fiscal first half approaching, the dollar was expected by some to see selling pressure against the yen, although others said this could be countered by yen sales related to the launch of Japanese mutual funds on Monday.
"Since this is the week when the fiscal half-year comes to an end, I think there will be a decent amount of (dollar selling)," said a senior trader at a major Japanese bank.
"But because we are in such a situation, that also means that wariness toward intervention is strong."
He doubted the dollar would fall rapidly even if stop-loss sell orders near 84.00 yen were triggered, adding: "It's scary to sell the downside."
The dollar held steady at 84.30 yen
It was also more than a yen above the 15-year low of 82.87 hit shortly before Japanese authorities acted nearly two weeks ago to sell yen for the first time in six years. A estimated total of 2 trillion yen ($23.7 billion) was sold, the largest single-day yen selling intervention.
But the dollar dropped to an eight-month low against a basket of currencies as speculation of more U.S. quantitative easing kept it under pressure.
The euro
Oil was steady, trading close to a two-week high near $77 reached earlier as energy and commodities regained the flavour of investors with a weaker dollar. (Editing by Tomasz Janowski)