ASIAN shares took their cues from Wall Street and kicked off a holiday-shortened week on a strong footing yesterday as oil prices recovered, while the euro touched a fresh two-year low against the greenback on divergent monetary policy expectations.

    Spreadbetters at IG expected Britain’s FTSE 100 to open up by 32 points, or 0.5 percent. They predicated Germany’s DAX would edge up by 5 points, or 0.1 percent, and France’s CAC 40 would open up by 13 points, or 0.3 percent.

    “Ahead of European trade, we are calling the major bourses firmer, said Melbourne-based IG Markets strategist Stan Shamu, “with some choppy price action likely.”

    MSCI’s broadest index of Asia-Pacific shares outside Japan extended gains and was up 1.4 percent. Japan’s Nikkei stock average pared early gains but managed to eke out a 0.1 percent rise ahead of a Japanese public holiday Tuesday, while Australian shares surged 1.9 percent.

    “We’re seeing a positive lead coming from Wall Street, (the) bounce in oil prices and energy stocks,” said Leanne Jones, market analyst at Bell Direct.

    “If we can continue seeing this Santa Claus rally continue then I suppose we’ll finish the year on a positive note,” Jones added.

    Oil took a breather after its recent gyrations, with U.S. crude adding 1 percent to US$57.69 a barrel, following a week in which it shed 2 percent to extend the rout that has nearly halved its value since June. Brent rose 1.2 percent to US$62.03.

    Activity was likely to be thin this week, with many investors away for Christmas and the run-up to New Year holidays.

    On Wall Street on Friday, U.S. shares rose, with the S&P 500 coming within a few points of its closing record high. That index has risen 5 percent since Wednesday to log its best three-day gain since 2011, after the U.S. Federal Reserve said it would be “patient” on raising benchmark U.S. interest rates, depending on domestic growth and inflation.

    By contrast, ECB governing council member Luc Coene said in a newspaper interview Saturday that the bank should start buying government bonds to tackle poor investor confidence and low inflation in the eurozone.

    The Bank of Japan on Friday maintained its pledge of increasing base money, or cash and deposits at banks, at an annual pace of 80 trillion yen (US$669.40 billion) through aggressive asset purchases. Governor Haruhiko Kuroda voiced confidence the bank will meet its ambitious price target despite a recent plunge in oil prices.

    (SD-Agencies)