By Chao Deng

Stocks in Asia rose Thursday, led by gains in Japan, where the benchmark index touched a near seven-year high.

The Nikkei Stock Average rose 1.0% to 16320.77--its highest level since November 2007---after the dollar hit a fresh six-year high against the yen. A weaker yen (USDJPY) helps Japanese exporters, which in turn boosts the stock market. The dollar touched Yen109.34, its highest level since August 2008 and was last at Yen109.14, slightly above Yen109.05 late Wednesday in New York.

Asian markets were also helped by a rise in U.S. stocks overnight. Data on new homes sales jumped in August, marking the highest level of sales since May 2008, although sales of previously owned homes fell, ending four months of gains. Uncertainty about the eurozone's economic recovery remained, amid a drop in German business confidence in September to its lowest level in more than a year.

Australia's S&P/ASX 200 was up 0.4%, ahead of a speech by Australia's central bank governor, Glenn Stevens. Australian shares fell yesterday after regulators raised the possibility of adopting further measures to curb mortgage-lending practices.

Korea's Kospi edged up 0.4%.

Hong Kong's Hang Seng was up 0.5%, while the Shanghai Composite was up 0.6%, setting a fresh highs in more than 18 months, after Beijing's move to cut the tax burden for companies spurred buying interest.

However, gains were tempered by caution over the pace of economic growth in China, where leaders are discussing replacing the central bank chief, Zhou Xiaochuan, amid disagreements over the direction of financial policy and concerns over slowing growth.

The Asian Development Bank expects China to meet its growth forecast of 7.5% for this year. But earlier this week, Goldman Sachs (GS) cut its 2014 GDP forecast for China to 7.1% from 7.6%.

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