SINGAPORE, Feb 15 The yen rose to a one-month high against the dollar on Thursday as Japa

SINGAPORE, Feb 15 (Reuters) The yen rose to a one-month high against the dollar on Thursday as Japan's economic growth beat forecasts, and the Nikkei steamed towards seven-year highs, leading a rally in Asian stocks driven by Wall Street gains.

The 1.2 percent expansion in the world's second-largest economy between October and December stirred talk of an interest rate rise.

Oil slid below $58, extending nearly 2 percent of losses on Wednesday, and gold dipped from seven-month highs overnight as the dollar hit six-week lows on the euro after Federal Reserve Chairman Ben Bernanke said inflation pressures were easing.

Britain's FTSE 100 index was seen opening 5-10 points lower, financial bookmakers said, having closed 0.62 percent higher at a six-year peak.

The dollar fell to 119.77 yen the lowest since Jan. 11, before recovering to 120.01 yen after the ruling party's policy chief Shoichi Nakagawa said Japan's economic expansion was still fragile.

The euro stood at 157.66 yen down from around 158.60 yen in late New York trade.

''It (GDP) was considerably above expectations. The market showed a pretty big reaction,'' said Masafumi Yamamoto, currency strategist for Nikko Citigroup.

''It will be a positive factor for people who want to raise interest rates, and a rise in rate rise expectations will be a reason to buy yen,'' Yamamoto said.

The euro hit a six-week high at $1.3153 in electronic trading on Bernanke's comments, seen as boosting chances of a U.S. interest rate cut later this year, which would make borrowing cheaper for U.S. firms and boost prices of Treasury bonds.

Tokyo's Nikkei ended up 0.8 percent for a fourth-straight session of gains to the highest level since May 2000, with investors buying retail shares such as Fast Retailing Co. Ltd.

T> , as an upturn in personal consumption propelled GDP growth.

But real estate stocks such as Mitsui Fudosan Co. Ltd. fell on worries about the impact of possible higher interest rates on their earnings.

Australian shares struck the 6,000-mark for the first time before closing 0.5 percent higher at another record peak, supported by robust earnings from firms such as Australian Stock Exchange Ltd., which jumped 7 percent.

''The great Australian dream now is not to own your home.

The great Australian dream now is to have what you want when you want it and people are living their lives like that,'' said businessman Jason Ryan, as he surveyed prices at the exchange.

''They are investing their money for today.'' Seoul shares ended at their highest level in nine months as chip makers such as Samsung Electronics Co. Ltd. advanced 1.2 percent, tracking higher U.S. peers.

Hong Kong shares rose 1.6 percent, with heavyweight China Mobile gaining 2.5 percent.

Singapore shares rose 2 percent to an all-time high as investors bought financial and telecom stocks ahead of the budget, but Taiwan is closed for the Lunar New Year festivities.

Bernanke's comments had pushed the Dow Jones average up 0.69 percent to a record closing high, and the Standard&Poor's 500 Index rose 0.76 percent, after touching an intraday peak. Tech-heavy Nasdaq advanced 1.16 percent.

LOOMING JAPAN INTEREST RATE HIKE? Japanese government bonds fell, with futures hitting a one-month low on speculation the Bank of Japan could raise interest rates after eight-straight quarters of economic growth.

But a Reuters poll found market players evenly split on whether the BOJ will raise rates to 0.50 percent from 0.25 percent when it holds its policy meeting on Feb. 20-21.

''If you ask whether the likelihood of a February rate rise is 100 percent, it's still hard to tell,'' said Masafumi Yamamoto, a currency strategist at Nikko Citigroup, which expects a BOJ rate hike next week.

''I don't think we will see a sudden change toward a trend of yen strength.'' U.S. Treasury prices dipped in Asia as some investors took profits after a rally on Bernanke's remarks. Investors were now watching if the Fed chief tweaks his comments at his second day of congressional testimony starting at 1500 GMT.

Oil shed 5 cents to $57.95 a barrel after falling on a smaller-than-expected decline in U.S. heating oil stocks.

Gold traded at $669.10/669.80 an ounce, just above closing levels in New York, but below a seven-month high of $671.85.

REUTERS PV HS1355