Exporters lead jump in Japanese shares Asian markets extended gains with Japanese shares jumping to their highest level since the March 2011 earthquake after the yen touched a 27-month low on expectations of more monetary policy easing. The Nikkei 225 Stock Average advanced 1.3 per cent as exporters were buoyed by the weaker yen. Taro Aso, Japan's new finance minister, on Wednesday signalled that the government will borrow to boost the struggling economy, unveiling plans to issue bonds and lift a cap on new debt for the 2012 fiscal year. The yen fell to a 27-month low of Y85.77 against the US dollar, compared with Y85.58 in New York late on Wednesday. Against the euro, the yen was trading at Y113.36, versus Y113.17. Automakers and financial companies led gains. Mazda Motor, which gets nearly 30 per cent of its sales in North America, surged 3.2 per cent and Honda Motor advanced 1.8 per cent. Mitsubishi UFJ Financial Group, Japan's largest lender, was ahead by 1.6 per cent on prospects for further monetary easing while Nomura Holdings climbed 5 per cent and Mizuho Financial rose 2.6 per cent. Gains were limited elsewhere in Asia by lingering worries about the fiscal impasse in the US, which could drag the economy into recession. US President Barack Obama cut short his Christmas holiday for last-ditch budget talks to avert a series of tax rises and spending cuts set to go into effect on January 1. South Korea's Kospi Composite index inched down 0.1 per cent after the government cut growth forecasts for this year and next as Asia's fourth-largest economy feels the pinch of Europe's debt crisis and the global economic slowdown. Seoul lowered its economic growth forecast for this year to 2.1 per cent from an earlier projection of 3.3 per cent and its outlook for next year to 3 per cent from 4 per cent. Telecom shares led the decline, hit by profit-taking. KT Corp dropped 4.8 per cent after saying on Wednesday it submitted a preliminary bid for a Moroccan telecoms company. SK Telecom sank 5 per cent. Australia's S&P/ASX 200 index gained 0.2 per cent with iron ore miner Fortescue Metals jumping 2.4 per cent on plans to resume expansion work in the new year on its Kings deposit in the Pilbara region. Retailers gained ground as customers returned to stores for post-Christmas shopping: Myer Holdings advanced 2.9 per cent and David Jones rose 2.1 per cent. Hong Kong's Hang Seng index rose 0.6 per cent as the city's market reopened after a two-day holiday. China's Shanghai Composite index added 0.5 per cent to a six-month high, after data showing profits at industrial companies jumped 22.8 per cent last month from a year earlier.