HONG KONG: Asian markets were mixed on Monday after Japanese shares opened at their highest level in seven months as risk appetite sharpened amid eased concerns over Europe's sovereign debt crisis.
The Nikkei 225 index at the Tokyo Stock Exchange began the day at 9,726.20, the best opening since August 2, when it started at 9,872.17. It ended the morning session 51.61 points higher at 9,698.99.
Hong Kong's Hang Seng index was 0.69 percent, or 146.91 points, higher at 21,553.77 and the Shanghai Composite Index was 0.46 percent, or 11.12 points, higher at 2,450.75.
In Australia, stocks slipped after Australian Prime Minister Julia Gillard comfortably saw off a leadership challenge by her bitter rival Kevin Rudd.
The benchmark S&P/ASX 200 fell from 0.27 percent down ahead of the ballot to 0.64 percent lower at 4,279.1 points afterwards but CommSec analyst Craig James said the day's events would be unlikely to have much impact.
Other regional markets were down as high global oil prices undermined optimism over debt-hit Greece and better US data.
"Central banks around the world have been engaging in phenomenal policy stimulus in response to the European crisis," Sharon Zollner, senior economist at ANZ bank in Wellington said in a note, according to Dow Jones Newswires.
"An oil shock would be a most unwelcome development, throwing the tradeoffs inherent in monetary policy into sharp relief," she added.
Japanese shares have risen steadily since the start of the month on a string of solid US economic indicators, the Bank of Japan's expansion of monetary easing programmes, and the yen's slide from record high levels.
The dollar stayed firm at 81.13 yen, keeping hold of its recent gains but a shade below the 81.20 yen seen in New York Friday.
US stock markets climbed steadily last week, nearing three-year highs. At the end of the week the Dow was up 0.3 percent to reach 12,982.95 points. The Nasdaq rose 0.4 percent and the S&P 500 rose 0.3 percent.
The euro maintained its momentum against the dollar Monday as speculators bet a bailout for Greece would be approved by the German parliament later in the day, despite some domestic opposition.
Shortly before the market opened, the G20 top and developing countries said the eurozone must put in place a bigger firewall to combat its debt crisis before other countries will help by giving more cash to the IMF.
Calls on the eurozone to boost a crisis-fighting war chest dominated a meeting in Mexico City, with top officials such as US Treasury Secretary Timothy Geithner saying it was essential to prevent more fallout worldwide.
At a crunch two-day summit in Brussels starting on Thursday, EU leaders will debate whether to combine their current firewall, the EFSF, with a permanent pot due to come into effect in July.
European Central Bank President Mario Draghi, speaking after the G20 meeting, said the eurozone was a safer place for investors than only a few months ago.
But the German Council of Economic Experts, a group of five economists who advise Berlin, told the Handelsblatt newspaper that many problems remained for the eurozone, particularly with the banking system.
The single currency stood at $1.3455, compared with $1.3451 in New York. It bought 109.12 yen, also little changed from 109.22.
Oil prices were lower as traders took profits from last week's gains, while concerns over crude producer Iran's nuclear programme remained, analysts said.
New York's main contract, light sweet crude for delivery in April, shed 23 cents to $109.54, while Brent North Sea crude for April delivery was down 14 cents to $125.33 in morning trade.
Gold was at $1,775.00 an ounce at 0355 GMT, compared with $1,779.15 on Friday.
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