** Shares of Macquarie Group MQG.AX, Australia's biggest investment bank by assets, extend their gains to rise 3.5% to A$187.59

** MQG to sell public asset management operations in the United States and Europe for A$2.8 billion ($1.79 billion) to Japan's Nomura 8604.T

** Stock is fifth-biggest percentage gainer in the S&P/ASX 200 financials index .AXFJ

** MQG stock up for three consecutive sessions

** Stock rose as much as 3.8% to A$187.72 earlier in the day, its highest level since April 10

** Morgan Stanley says there are several strategic moving parts in MQG's latest transaction

** "We think this allows MAM to pivot towards higher growth Alternative Asset classes."

** Three of 11 analysts rate MQG "buy", six "hold" and two "sell" or lower; their median PT is A$210.00 – according to data compiled by LSEG

** Stock down 15.4% this year, including the day's move

($1 = 1.5672 Australian dollars)

(Reporting by Roushni Nair in Bengaluru)

((Roushni.nair@thomsonreuters.com;))