The dollar held steady near its strongest level in seven weeks against the euro on Monday, while stock markets edged higher ahead of earnings reports from tech leaders Intel and Samsung Electronics.
Oil, which has fallen about $10 from record highs in October, edged up to $45.56 a barrel after storms in the U.S. mid-Atlantic and West Coast boosted demand for fuel.
The dollar held near gains made after U.S. Treasury Secretary John Snow said at the weekend the Bush administration supported a strong U.S. currency and wanted to cut the budget deficit, though trade was thinned by a holiday in Japan.
Taiwan shares climbed 0.3 percent as semiconductor issues such as Taiwan Semiconductor Manufacturing Co., up 1.3 percent, tracked a 1.4 percent rise in their U.S. peers on Friday.
South Korean shares edged up 0.2 percent, but gains were capped by a 0.2 percent drop in Samsung Electronics Co. Ltd. ahead of its earnings on Friday.
"The biggest worry still remains the IT sector and investors are wary about fourth-quarter results," said Hwang Chang-jung, an analyst at LG Investment & Securities.
MSCI's broadest index of Asia Pacific shares outside Japan had edged up slightly by 9:15 p.m. EST.
Investors will focus this week on earnings from key companies such as Alcoa Inc. on Monday, Intel Corp. on Tuesday, Apple Computer Inc. on Wednesday and Sun Microsystems on Thursday.
U.S. retail sales data on Thursday will also be scrutinized for clues on the health of the world's largest economy.
DOLLAR HOLDS STEADY
The euro stood around $1.3068 versus the dollar, compared with $1.3051 late in New York on Friday, when it touched its lowest level since Nov. 23 at $1.3023.
The dollar was at 104.69 yen, compared with 104.81 yen on Friday and 105.06 yen the previous day.
A report on Friday showed U.S. employers added 157,000 employees to payrolls in December - not too far off economists' expectations of 175,000 jobs - completing the strongest year for job growth since 1999.
A poll after the jobs data found that 20 out of 21 top bond dealers expect a quarter-percentage-point rise in the federal funds rate will be announced on Feb. 2 and 18 anticipate another small hike at the following policy session on March 22.
Australia's benchmark index rose 0.2 percent to the latest in a series of record highs, lifted by banking shares. Shares in Hong Kong fell 0.4 percent, while Singapore edged up 0.2 percent.
Gains in South Korean shares were capped after a key consumer sentiment index fell for the third consecutive month in December, hitting a four-year low and fueling speculation the central bank could cut interest rates this week to spur domestic demand.
Technology shares rose in Taiwan as investors bet on strong earnings from Intel and shrugged off declining revenues at contract chip makers TSMC and United Microelectronics, announced after the market closed on Friday.
Most Asian share markets fell last week, weighed down by fears that the U.S. Federal Reserve might abandon its pace of gradual interest rate rises for a more aggressive approach.
Friday's jobs data suggested the Fed's policy of gradual rate rises would continue.
Spot gold was at $419.50 an ounce, versus $418.40 an ounce last quoted by traders in New York. (Reuters)