(Corrects milestone for dollar in third bullet to two-week lows)
* MSCI ex-Japan at highest since December 2007
* Australia at one-month highs; Japan at 21-month top
* Dollar steadies around two-week lows, euro holds gains
* Oil prices tick up on signs of tighter near-term supply
By Swati Pandey
SYDNEY, Oct 11 (Reuters) - Asian shares jumped to the highest in a decade on Wednesday as Wall Street scaled all-time highs, while the dollar loitered around two-week lows on worries President Donald Trump's tax plan could stall.
The euro traded around a 10-day peak after Catalonia's leader suspended plans to leave Spain, easing near-term concerns about euro zone stability.
The MSCI's broadest index of Asia-Pacific shares outside Japan climbed 0.5 percent to 546.38, a level not seen since December 2007.
Australian stocks jumped to 1-1/2 month highs while South Korea's KOSPI added 0.6 percent to within a whisker of record peaks.
Japan's Nikkei edged closer to a 21-month top, even as scandal-hit Kobe Steel extended losses.
Sentiment was boosted after the International Monetary Fund upgraded its global economic growth forecast for 2017 and 2018, driven by a pickup in trade, investment, and consumer confidence.
"A risk-on mood has set in and money is flowing out of bond funds into equities funds," said Hugh Dive, chief investment officer at Atlas Funds Management.
"One of the biggest drivers of global equities is the United States and some of the macro data coming out from there has been quite positive. There is also this view that China is travelling much better than many people had expected."
The three major Wall Street indices set record highs again, with Dow up 0.3 percent, the S&P 500 adding 0.2 percent and the Nasdaq inching 0.1 percent higher.
In currency markets, the dollar held around a two-week trough as U.S. President Donald Trump's escalating war of words with Senator Bob Corker raised concerns about the administration's ability to pass promised reforms.
The dollar index steadied at 93.314 against a basket of currencies, around the lowest level since Sept.29.
FED MINUTES
The greenback was also under pressure amid ongoing uncertainty over the next Federal Reserve Chairman, with the predictions market site, PredictIt, favouring Fed governor Jerome Powell as the most likely candidate.
While Powell is regarded as more hawkish than incumbent Janet Yellen, whose term expires in February, analysts say he might be less aggressive in winding back stimulus than Kevin Warsh, another possible candidate for the role.
Investors will keep an eye on the minutes of the Fed's September meeting due later in the day, which might help bolster views of a December rate hike.