* Asia ex-Japan, Nikkei set for weekly gains
* Europe shares poised for flat to lower start
* U.S. 2-year Treasury yield hits 6-1/2-yr high
* Oil slides ahead of OPEC meeting; gold retreat continues
By Nichola Saminather
SINGAPORE, Nov 25 (Reuters) - Asian stocks advanced on Friday as the Thanksgiving break in the United States helped slow a relentless surge in the dollar that has sucked capital out of most emerging markets.
European markets, however, are poised for a more lacklustre start, with financial spreadbetter CMC Markets expecting Britain's FTSE 100 to open 0.1 percent lower, and Germany's DAX and France's CAC 40 to be flat.
The respite for Asian assets too may be short-lived, with U.S. Treasury yields resuming their climb after the holiday as investors bet that President-elect Donald Trump will adopt policies that increase spending and debt, as well as spur higher growth and inflation.
MSCI's broadest index of Asia-Pacific shares outside Japan added 0.5 percent. It is set to end the week 1.7 percent higher, its biggest weekly gain in two months.
But it remains down 2.7 percent from its close on Nov. 8 before Trump's surprise election win. His protectionist campaign promises are widely seen as negative for the region.
Emerging market stocks have also broadly taken a hit, although the MSCI Emerging Markets index pared losses to 0.2 percent on Friday. While the index is up 1.2 percent for the week, it remains 5.3 percent below its Nov. 8 close.
The dollar index, which tracks the greenback against a basket of six major global peers, edged down 0.1 percent to 101.60 on Friday, down from its Thursday peak of 102.05, the highest level since March 2003.
The U.S. currency has been on a tear since Trump's win, and strong U.S. manufacturing and consumer data this week have bolstered the case for higher interest rates. The dollar index has risen 0.4 percent this week, and 3.8 percent since Nov. 8.
"The trend is likely to remain with the U.S. (Federal Reserve) poised to strike in December and market positioning for U.S. President-elect Trump to fulfill his fiscal and tax cut plans," Singapore-based UOB Group's global economics and markets research team wrote in a note on Friday.
The expectations are triggering a dramatic surge in bond yields, which is pulling capital out of emerging markets.
The two-year U.S. Treasury yield jumped to a 6-1/2-year high of 1.17 percent on Friday. It was at 1.1506 percent as of 0540 GMT.
The 10-year yield, which hit a 16-month high of 2.417 percent this week, was at 2.3915 on Friday.
The dollar's pullback on Friday took some pressure off other currencies, which have been pummelled this month by its strength.