Asia Stocks Mostly Higher, Optimistic on US Earnings

Sydney: Most Asian stock markets edged higher on Monday as investors set aside geopolitical concerns for the moment to focus on the generally upbeat flow of US corporate earnings ahead of a host of results due this week.

Volumes were very light as Japanese markets took a holiday. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.3 per cent, with modest increases for most markets across Asia.

Spread betters predicted opening gains of 0.1 to 0.2 per cent for the FTSE 100, DAX and CAC 40.

A crowd of US companies report this week, ranging from Apple Inc to McDonald's Corp, Coca-Cola Co and Caterpillar Inc.

Of 82 companies in the S&P 500 that had reported earnings through Friday morning, 68 per cent beat Wall Street's expectations, Thomson Reuters data showed. That was roughly in line with the 67 per cent rate for the past four quarters and above the 63 per cent rate since 1994.

The Dow ended Friday up 0.7 per cent, while the S&P 500 gained 1 per cent and the Nasdaq was up 1.6 per cent. For the week, the Dow rose 0.9 per cent, S&P 500 gained 0.5 per cent and the Nasdaq added 0.4 per cent.

Geopolitical concerns kept US Treasuries and German debt well underpinned. US 10-year yields were steady at 2.48 per cent on Monday, while German bunds were yielding just 1.16 per cent having neared all-time lows.

The UN Security Council is due to vote Monday on a resolution that would condemn the downing of a Malaysian passenger plane.

US Secretary of State John Kerry on Sunday laid out what he said was overwhelming evidence of Russian complicity in the downing of the airliner.

In Gaza, Hamas's armed wing said on Sunday it had captured an Israeli soldier in a nearly two-week military offensive that has killed hundreds of Palestinians and 13 Israeli soldiers.

Mr Kerry will travel to Cairo on Monday to meet with Egyptian officials about the crisis.

After an initial bout of risk aversion, major currencies have settled into an eerie clam. The dollar index was steady at 80.513, having retreated from a one-month peak last Friday when the euro bounced off a five-month trough of $1.3491.

Traders said buying interest below $1.3500 helped squeeze the euro up to $1.3539. The common currency should see solid support at $1.3460/80, an area that had provided a floor on several occasions in the past 10 months or so.

The greenback was at 101.23 yen and not far from last week's low of 101.09. The euro stood at 137.09 yen, off a five-month trough of 136.71.

Gold was idling at $1,311.14 an ounce, after last week's choppy action saw it swing between $1,339 and $1,292.

Crude oil prices were subdued after enjoying only a brief rally last week. Brent inched up 5 cents to $107.29 a barrel. US crude fell 24 cents to $102.89 a barrel.