Asia mainly up, China slips

Hong Kong - Asian markets were mainly up on Monday after the majority of eurozone banks were given a clean bill of health by the European Central Bank, but China was hit by the postponement of a planned stock-trading connection between Hong Kong and Shanghai.

Tokyo was up 0.37% by the break, Seoul climbed 0.42%, and Sydney was up 0.56%, but Shanghai dropped 0.67%, while Hong Kong was down 0.94% in morning trade.

The Chinese markets were affected by the suspension of the Shanghai-Hong Kong Stock Connect programme, which had been expected to launch this week.

Charles Li, the head of Hong Kong's stock exchange, said on Monday the tie-up had been postponed, and warned recent pro-democracy protests that have gripped the city for the past month could have an impact on the scheme's progress. He did not say how long the delay would be.

Other markets were boosted by a stable euro early Monday after four out of five eurozone banks passed the ECB health test, fuelling hopes that a major cause of economic uncertainty could soon be eliminated, analysts said.

The common currency bought $1.2676 and ¥137.10 against $1.2666 and ¥136.97 in New York on Friday afternoon.

In the most in-depth and stringent audit of eurozone banks ever undertaken - aimed at preventing a repeat of the crisis that nearly led to the euro's collapse - the ECB found that 25 out of a total 130 banks had a combined capital shortfall of €25bn at the end of 2013.

The dollar was at ¥108.18 early on Monday compared with ¥108.14 in US trade on Friday afternoon.

US stocks on Friday capped a strong week on a high note as good earnings from Microsoft and others overshadowed a poor report from Amazon.

The Dow Jones Industrial Average gained 0.76% while the broad-based S&P 500 advanced 0.71%.

World oil prices extended last week's fall. US benchmark West Texas Intermediate for delivery in December was down six cents to $80.95 in mid-morning Asian trade and Brent crude for December tumbled 27c to $85.86.

Gold was at $1 231.06 an ounce against $1 233.37 late on Friday.