SINGAPORE - ASIAN stocks rose to their strongest in nearly four months on Monday and the dollar held on to most of last week's gains after jobs data suggested the US economic slowdown may not be as severe as investors had expected.

Commodities extended Friday's gains, with gold and grains up in early trade, while Treasuries were flat.

Stock markets in Australia and Singapore both gained 0.6 per cent, while Hong Kong was steady, but volumes were thin as Japan and Korea were closed for national holidays. UK markets are also shut on Monday.

By 10.15am Singapore time, MSCI's measure of Asian stocks outside Japan was up 0.3 per cent at 499.4 after rising 1.7 per cent on Friday.

The benchmark jumped 8 per cent last month, led by battered financials on expectations the global credit crisis may have reached a turning point. The index is still down 6 per cent this year.

Global stocks as measured by MSCI gained 5.3 per cent in April, its largest monthly gain since December 2003.

US stocks ended higher on Friday after data showed The world's largest economy shedding jobs at a slower pace than expected, easing concerns about the risk of a deep recession.

The US shed lost 20,000 jobs last month, fewer than the 80,000 that economists had anticipated.

Still investor Warren Buffett, the world's richest person, however said on Sunday the US economy was in recession and banks would face more pain.

In Asian markets, shares in China's top e-commerce firm Alibaba.com were high profile losers, down 5 per cent after Microsoft abandoned its bid to buy for Alibaba's major investor Yahoo.

Microsoft's move could be positive for US stocks on Monday as it is expected to drive up the software company's heavily weighted shares.

KUALA LUMPUR
Malaysian share prices closed 0.3 per cent higher on Monday as investors bought into plantation bluechips, dealers said.

The Kuala Lumpur Composite Index (KLCI) closed up 3.13 points at 1,274.61.

HONG KONG
Hong Kong stocks fell from the previous session's 3-1/2-month closing high on Monday, led by heavyweight China Mobile , as Beijing's new rules to allow more funds into Hong Kong were not expected to have a big immediate impact.

The benchmark Hang Seng Index closed down 0.22 per cent at 26,183.95. The China Enterprises Index of Hong Kong-listed mainland companies, or H shares, edged down 0.04 per cent to end at 14,625.28.

SHANGHAI
Chinese share prices closed 1.84 per cent higher Monday on continued positive sentiment following a jump of nearly five percent in the key index during its previous session, dealers said.

A 25 basis points rate cut by the US Federal Reserve last week also encouraged Chinese investors on their return to the market from last week's Labour Day holiday, they added.

The benchmark Shanghai Composite Index, which covers A and B shares, closed up 67.90 points at 3,761.01 on turnover of 147.6 billion yuan (S$28.7 billion).

The Shanghai A-share Index was up 71.23 points or 1.84 per cent to 3,946.45 on turnover of 147.1 billion yuan. The Shenzhen A-share Index added 34.28 points or 2.97 per cent to 1,186.83 on turnover of 64.0 billion yuan.

TOKYO
The Japanese market is closed on Monday and Tuesday for the holidays. Trading will resume on Wednesday.