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Hong Kong - Asian markets rose on Monday following widespread falls last week, after Wall Street shrugged off fears over instability in Iraq and Ukraine.
Tokyo rebounded 2.38%, closing up 352.15 points at 15 130.52 and making up much of the 2.98% dip it suffered on Friday after US President Barack Obama's announcement that he had authorised air strikes in Iraq.
Hong Kong closed up 1.29% at 24 646.02 while Shanghai gained 30.22 points to 2 224.65.
Other regional markets saw more modest gains. Sydney rose 21.7 points to 5 457.0 while Seoul was up 8.27 points, closing at 2 039.37.
The dollar also rallied against the yen and euro after the unit plunged last week as investors snapped up the Japanese currency, seen as a safe haven in times of uncertainty and turmoil.
Last week ended on a sour note for most Asian markets as worried investors took fright from a ramping up of instability in Iraq, where the US has been launching air strikes against extremist militants besieging ethnic minorities in the country's north.
But US markets shrugged off the escalation of violence, ending the week in the black with a rally on Friday.
The Dow Jones Industrial Average rose 0.37% over the week to end at 16 553.93. The tech-rich Nasdaq Composite Index added 0.42% to 4 370.90.
Analysts said Asian market players were still keeping a close eye on the global geopolitical situation, but investors were beginning to feel both the Ukraine and Iraq conflicts were de-escalating.
"On an interim-term view, geopolitics remain at the forefront of investors' decision-making," wrote Evan Lucas at Melbourne-based IG Ltd in a note.
The conclusions from the weekend "are that conflicts are cooling", he said.
But risks remain. Over the weekend Ukraine's army shelled the main rebel bastion of Donetsk, as Russia called for a humanitarian ceasefire which the West warned could be a pretext by Moscow to send in troops.
In the week ahead, investors will be watching economic health indicators from China. The world's second largest economy is due to release its latest industrial output, retail sales and fixed-asset investment figures on Wednesday.
US retail sales and industrial production for July will also be released later this week.
In forex trade the dollar strengthened to ¥102.13 in Tokyo afternoon trade, against ¥102.06 in New York late on Friday and ¥101.81 in Asia.
The euro was quoted at $1.3401 and ¥136.87, slipping from $1.3416 and ¥136.93 in New York.
Oil prices were mixed. US benchmark West Texas Intermediate for September delivery rose 15 cents to $97.80 while Brent crude for September fell 6c to $104.96.
Gold slumped to 1 307.68 an ounce by 12:50 compared to its three-week high of $1 322.92 an ounce on Friday.
In other markets:
- Jakarta rose 59.48 points, to close at 5 113.24.
Palm oil producer Astra Agro Lestari rose 1.05% to 26 500 rupiah, while Hero Supermarket fell 1.85% to 2 650 rupiah.
- Kuala Lumpur gained 0.51% to close at 1 849.32.
Malaysia Airline System rose 8.33% to 0.26 ringgit and Tenaga Nasional added 0.67% to 12.06 ringgit.
- Manila closed 1.11% higher at 6 956.66.
Top-traded JG Summit Holdings gained 2.31% to 53.20 pesos while Philippine Long Distance Telephone rose 2.67% to 3 080 pesos.
- Mumbai rose 0.75% to end at 25 519.24.
Aurobindo Pharma gained 6.94% to 771.55 rupees, while Mahindra & Mahindra rose 6.45% to 1 308.40 rupees.
- Singapore rose 0.53% to 3 306.45.
Real estate developer Capitaland gained 0.30% to Sg$3.36 while United Overseas Bank fell 0.26% to Sg$22.63.
- Wellington fell 0.11% to 5 049.63.
Air New Zealand was down 0.26% at NZ$1.935 while Spark was off 0.35% at NZ$2.81.
- Taipei rose 0.96% to 9 172.91.
Hon Hai Precision Industry added 1.46% to Tw$104.0 while Cathay Financial Holding was 1.24% higher at Tw$48.9.
