HONG KONG - The United States dollar rose to a 1-month high against the yen on Monday on easing fears about the world's largest economy, and Asian stocks were mixed as financial sector uncertainty lingered ahead of a slew of company earnings.

Oil prices below US$124 (S$169) a barrel provided some comfort on global economic growth prospects, but a profit warning from Australia's third-biggest bank, which forecast more than US$1 billion in write-downs, cast a pall on the region.

Japan's Nikkei share average rose 0.5 per cent after US economic data spurred hopes for the country?s enfeebled export sector.

'Solid moves in US stocks and a softer yen are supporting the market, but investors are finding it difficult to buy due to a large amount of uncertainty,' said Mr Yutaka Miura, deputy manager of the equity information department at Shinko Securities in Tokyo.

Outside Japan, shares in Asia-Pacific were down 0.5 per cent, according to an MSCI index.

Australia's benchmark S&P/ASX 200 index slid 1.3 per cent, led by Australia and New Zealand Banking Group, whose shares slumped as much as 13 per cent after it said its earnings per share would likely fall as much as 25 per cent because of costs associated with bad loans.

Hong Kong's Hang Seng was largely unchanged, with gains in Sinopec tempered by a decline in HSBC Taiwan's markets were closed due to a typhoon.

The US dollar extended a small rally from last week and climbed to the highest against the yen in a month, above 108 yen It was bolstered by data showing US consumer sentiment bounced from a 28-year low, a surprise rise in business investment and new home sales that were not as weak as expected.

KUALA LUMPUR
Malaysian shares started the week on a steady note.

The benchmark Kuala Lumpur Composite Index ended morning session at 1,155.01 up 13.26 points.

HONG KONG
Hong Kong shares were up 0.3 per cent at midsession on Monday, led by energy stocks, which rallied from Friday's battering, but volumes remained wafer-thin on caution ahead of slew of economic data from the US.

The Hang Seng Index ended the morning session up 57.31 points at 22,798.02, barely changed from its opening level.

SHANGHAI
Chinese share prices rose 1.48 per cent by midday on Monday after the central bank suggested monetary policy would focus more on maintaining growth than curbing inflation, dealers said. The central bank said in a report issued on Sunday night that it will create 'create a good environment for stable, relatively fast growth', while omitting a reference to a tight policy stance it adopted in December.

Dealers said the comments eased concerns over further monetary tightening, leading investors to build up positions in oversold banks and real estate stocks.

The benchmark Shanghai Composite Index, which covers A and B shares, added 42.37 points to finish the morning at 2,907.48.

The Shanghai A-share index was up 44.62 points, or 1.48 per cent at 3,050.20, while the Shenzhen A-share index rose 10.31 points, or 1.14 per cent, at 913.26.

TOKYO
Japanese share prices closed 0.14 per cent higher on Monday, ending off early highs after a modest boost from gains on Wall Street in the wake of better-than expected US economic data, dealers said.

The Tokyo Stock Exchange?s benchmark Nikkei-225 index added 19.02 points to close at 13,353.78. The broader Topix index of all first-section shares firmed 2.51 points or 0.19 per cent to 1,300.79.