European shares rise as euro jumps above $1.34 European stocks rose on Friday after strong gains across Asia and on Wall Street, while the euro hit a two-month high against the dollar on improved sentiment over Greece and the wider economy. London's benchmark FTSE 100 index rose 0.10 percent to 5,943.46 points in late morning deals, while Frankfurt's DAX 30 grew 0.86 percent to 6,867.14 points and the Paris CAC 40 gained 0.59 percent to 3,466.97. In foreign exchange trade, the euro climbed above $1.34 to reach its highest level since December 9. In later London deals, the European single currency stood at $1.3387 compared with $1.3369 late in New York on Thursday. The dollar grew to 80.44 yen from 79.98 yen, while gold prices climbed to $1,782.15 an ounce compared with $1,777 an ounce on Thursday. "It looks as if we can end the week on a positive note," said David Morrison, senior strategist at traders GFT Markets. Equities continue to get a lift from central bank liquidity operations, as do other so-called 'risk assets' such as precious metals and oil. "Investors are also convinced that sufficient firewalls are in place to insulate other eurozone countries in the event of Greece defaulting -- something that is now viewed as highly probable," he added. Greece will launch a bond swap on Friday under a deal with private investors to write off 107 billion euros from its debt mountain of 350 billion euros ($462 billion). The bond swap, in effect a cancellation of nearly a third of debt owned by Greece, is a critical part of a debt rescue stitched together with immense difficulty by the eurozone and International Monetary Fund, to avert default. It is a second overall rescue for Greece, but the bond component, now at the last hour of the timetable for application, depends on the rate of participation by private investors. Asian shares meanwhile rose strongly on Friday, pushed higher by changes in Chinese bank rules and gains on Wall Street, dealers said. Chinese shares gained more than one percent, led by banking and property stocks with the Shanghai Composite Index closing up 1.25 percent. China's central bank cut the reserve requirement ratio for commercial banks by 50 basis points from Friday to ease restrictions on lending and give the domestic economy a boost. US stocks had closed broadly higher on Thursday, helped by solid gains from Procter & Gamble over its cost-cutting plan and blue-chip stalwart IBM.