Euro up on gains in Asia trade

The euro traded higher against the dollar and yen in Asia on Friday on improved risk sentiment spurred by gains in Asian stock markets, dealers said.The euro fetched $1.3326 and 108.21 yen in Tokyo morning trade, compared with $1.3311 and 107.97 yen in New York.The dollar was changing hands at 81.20 yen against 81.10 yen in New York.No fresh news is behind the rise, but risk sentiment is improving, a trader at a major Japanese bank told Dow Jones Newswires.Tokyo stocks opened up 0.68 percent on Friday helped by a cheap yen and positive US jobs and retail data that pushed up shares on Wall Street overnight.Chinese, Hong Kong, Taiwanese and South Korean stocks all saw gains Friday morning.Investors eyes are on figures for Japans current account due out next week and US jobs data due out later Friday, as well as a European leaders summit, Masafumi Yamamoto of Barclays Capital said in a note to clients.The focus is whether European leaders will agree on expanding the ESM, Yamamoto said, referring to the European Stability Mechanism to fight debt turmoil.Eurozone leaders decided at the summit on Thursday to pour cash into the ESM faster than initially agreed, the blocs president said, in a bid to boost market confidence.The ESM is a permanent bailout pot due to come into force in July and eventually replace the temporary EFSF fund.Germany, Europes top economy and political heavyweight, is steadfastly against a move to expand the funds, although Chancellor Angela Merkel has reportedly softened her opposition. The meeting continues Friday.