Asian markets track Wall St rally on US jobs data
Oil prices rose as traders await Israel's response to Iran's missile barrage last week amid fears of a region-wide war in the Middle East.
All three main indexes on Wall Street rallied Friday on data showing a forecast-busting 254,000 US jobs were created last month and the unemployment rate fell.
The reading was the best in six months and sharply higher than readings in July and August, which had sparked worries that the economy could be heading for a recession.
The dollar rallied on the reading as investors lowered their expectations the Federal Reserve will cut interest rates 50 basis points for a second straight meeting when it gathers this month.
"The September payrolls print was meaningfully better than expected," said Taylor Nugent, a senior markets economist at National Australia Bank.
"It was going to take more bad news for the (board) to match the extent of cuts in near-term pricing.
"But instead the data was supportive of (its) assessment that the US labour market is not primed for imminent, sharper deterioration and may even be holding up a little better than expected."
Inflation data later in the week will be closely watched by traders hoping for more of an idea about the Fed's decision-making.
Jim Reid at Deutsche Bank Research said: "My personal view was always that the amount of rate cuts priced in since mid to late summer was only likely if we had a recession.
"If we didn't, then the rates market overall was too pessimistic. I would still say that today."
The stronger dollar against the yen boosted Japanese stocks, with the Nikkei 225 climbing almost two percent, while Hong Kong extended its recent rally fuelled by China's raft of economic stimulus measures.
There were also gains in Sydney, Singapore, Seoul, Taipei, Jakarta, Bangkok and Manila.
Wellington and Mumbai edged down, while London, Paris and Frankfurt were on the back foot in early trade.
Shanghai was closed for a holiday.
Crude prices reversed early losses after a volatile day Friday that saw them soar five percent at one point before paring the gains.
The initial rally came after US President Joe Biden said he was "discussing" possible Israeli strikes on Iranian oil sites in retaliation for Tehran's barrage.
But the commodity pared the gains after Biden advised Tel Aviv against such action, saying he was trying to rally the world to avoid the escalating prospect of all-out war in the Middle East.
Still, investors are awaiting the next developments in the crisis on the first anniversary of Hamas's deadly attack on Israel that led the country to fighting wars against the Iran-aligned militant group in Gaza and Hezbollah in Lebanon.
Key figures around 0810 GMT
Tokyo - Nikkei 225: UP 1.8 percent at 39,332.74 (close)
Hong Kong - Hang Seng Index: UP 1.6 percent at 23,099.78 (close)
London - FTSE 100: DOWN 0.1 percent at 8,271.53
Shanghai - Composite: Closed for a holiday
Dollar/yen: DOWN at 148.30 from 148.64 yen on Friday
Pound/dollar: DOWN at $1.3113 from $1.3124
Euro/dollar: DOWN at $1.0970 from $1.0976
Euro/pound: UP at 83.66 pence from 83.62 pence
West Texas Intermediate: UP 1.0 percent at $75.15 per barrel
Brent North Sea Crude: UP 0.8 percent at $78.68 per barrel
New York - Dow: UP 0.8 percent at 42,352.75 points (close)