(REUTERS) -- The Nikkei share average surged above its 25-day moving average to a two-week high on Thursday after the world's central banks took coordinated actionto ease funding strains among banks caused by the debt crisis in
Europe.    

The central banks' offer of cheaper dollar funding has eased worries about an immediate meltdown in the global financial system, but market players remained cautious about prospects for
a resolution to the crisis.

This just means they expanded emergency measures. The moreimportant point is whether Europe is going to have a bigger bailout fund and that's still up in the air, said Soichiro Monji, chief strategist at Daiwa SB Investments.    

The benchmark Nikkei rose 2.1 percent to 8,612.00, climbing above its 25-day moving average, now around 8,578, and rising at one point to 8,652, its highest level since Nov. 14.    

Some market participants said they were keen to see if the Nikkei could maintain its gains and close above its 25-day moving average -- a prerequisite for any extension of the rally.    

They said that selling from European pension funds was continuing, underscoring the potential for distress in the euro zone to push the market lower.    

The Nikkei faces more resistance from its 75-day moving average around 8,687 and above that the daily Ichimoku
cloud looms at 8,704-8,747.     

With the expiry of Nikkei December futures options due next Thursday, the option strike price of 8,750 may also become resistance, some market participants also said.    

The broader Topix index rose 1.8 percent to 741.38.    

Trade volume and turnover picked up. By the midday recess, 977 million shares changed hands, compared to around 700 million in the past week. Many market players say a clear recovery in trade volume will improve market sentiment.    

The gains in Japanese shares were smaller than regional peers, with Asian shares outside Japan rising 3.6
percent.     

In Tokyo, construction makers and shippers, the main beneficiaries of China's booming economy, were among the top
performers after China's central bank cut reserve requirements for commercial lenders on Wednesday for the first time in three years.    

Komatsu Ltd jumped 6.5 percent to 2,018 yen while rival Hitachi Construction rose 6.7 percent to 1,415
yen. Mitsui OSK Lines rose 5.4 percent to 252 yen.
    
But Japan's No. 2 and No.3 mobile carriers, KDDI Corp and Softbank Corp fell on report that top
mobile operator NTT Docomo Inc will also sell Apple's  iPhones and iPads in Japan.     

The Nikkei Business online said Docomo will first sell the iPad with high-speed packet access next summer, followed by the iPhone in autumn next year.    

Docomo shares rose 1.9 percent to 137,600 yen while KDDI fell 1.0 percent to 500,000 yen and Softbank dropped 3.7 percent to 2,453 yen.