Japanese shares touched an eight-year high on Monday following a record close on Wall Street, with investors cautiously optimistic the European Union would make progress this week on a debt deal with Greece.
Oil prices faded after an early spurt, while the major currencies stayed locked in recent tight ranges.
Data from Japan showed the economy emerged from recession in the final quarter of last year, though th growth of 0.6 per cent was short of market forecasts.
Investors still seemed encouraged and the Nikkei firmed 0.6 per cent to its highest since 2007.
MSCI’s broadest index of Asia-Pacific shares outside Japan recouped a small initial loss to inch ahead to 483.90. The index boasted its highest close since late October on Friday but is bumping up against a major band of chart resistance in the 484 to 486 area.
Australia’s main index went flat, while Shanghai shares rose 0.1 per cent. Holidays will be a feature this week with the United States off on Monday and much of Asia celebrating the Lunar New Year. China’s markets are off from February 18 right through to the 24th.
Euro zone meet
The Eurogroup of finance ministers meets in Brussels later on Monday to try to find common ground with Greece’s new government, in talks that could drag on for some time.
Greece had said on Sunday that it was confident of reaching an agreement in negotiations with its euro zone partners, but reiterated it would not accept harsh austerity strings in any debt pact.
Markets have generally assumed a compromise would eventually be found, given the alternative might be a disastrous Greek exit from the euro.
Wall Street
The S&P 500 ended at a record high on Friday, as energy shares gained with oil prices, while the Nasdaq hit a 15-year high helped by technology stocks.
The Dow gained 0.26 per cent, while the S&P 500 added 0.41 per cent and the Nasdaq 0.75 per cent. The FTSEuroFirst index of 300 leading shares closed up 0.64 per cent, helped by upbeat growth data from Germany.
Euro vs dollar
Without a clear outcome on Greece, there is little conviction to buy or sell the euro. As a result, the common currency has been drifting in a slim $1.1262-1.1534 range in the last few weeks. It was last flat at $1.1409.
Against the yen, the euro was a touch softer at 135.00, off a three-week peak of 136.70 reached last Thursday. The dollar slipped to 118.59 yen, recoiling from a one-month high of 120.48 set last Wednesday.
The main mover on Monday was sterling, which scaled a six-week peak following recent hawkish-sounding comments from the Bank of England. The pound climbed as far as $1.5435 from around $1.5407 late on Friday.
In commodities, oil ran out of puff after a sharp rally on Friday. Brent crude dipped 27 cents to $61.25 per barrel, while US crude lost 25 cents to $52.53.