NEW YORK (Reuters) – U.S. stocks rose in light volume on Friday, with basic materials shares leading the way as commodity prices kept rising on the back of a weaker U.S. dollar.

The greenback fell broadly after weaker-than-expected U.S. consumer spending and housing data stoked worries that the recovery is losing momentum.

Freeport-McMoRan Copper & Gold Inc (FCX.N) rose 2.5 percent to $51.65. The S&P materials sector index (.GSPM) added 0.8 percent as the dollar’s decline helped lift metals and other commodity prices. The Reuters-Jefferies CRB index (.CRB) was headed for a third straight week of gains.

The inverse correlation of the dollar to equities “seems to be a trend that you can focus on as an investor for the time being,” said Michael Sheldon, chief market strategist at RDM Financial in Westport, Connecticut.

“The logic is that a weaker dollar helps increase exports, sales and profits for multinational companies in the United States.”

The Dow Jones industrial average (.DJI) gained 28.64 points, or 0.23 percent, to 12,431.30. The Standard & Poor’s 500 Index (.SPX) rose 4.11 points, or 0.31 percent, to 1,329.80. The Nasdaq Composite Index (.IXIC) added 10.24 points, or 0.37 percent, to 2,793.16.

The S&P 500 was on track to close its fourth straight week of losses, a streak not seen since February 2010.

Thin trading made for a lackluster day on Wall Street, with desks short-staffed before the Memorial Day holiday that will keep U.S. markets closed on Monday.

“Trading is on the soft side, with many investors getting a head start on the holiday weekend,” RDM Financial’s Sheldon said.

Bank stocks led gains in Europe and also boosted the U.S. market. Bank of America (BAC.N), which had the heaviest turnover on the New York Stock Exchange with more than 9 million shares, rose 2.1 percent to $11.70. It was the Dow’s biggest percentage gainer.

Medco Health Solutions Inc (MHS.N) will lose a major pharmacy benefit contract to CVS Caremark Corp (CVS.N) starting next year, a setback that drove its shares down 9.8 percent to $58.13. CVS shares rose 1.8 percent to $38.83.

On the macroeconomic front, separate reports showed the U.S. economy remained sluggish early in the second quarter with high gasoline prices crimping consumer spending and bad weather helping to push home resales to a seven-month low in April.

(Reporting by Rodrigo Campos; Editing by Jan Paschal)

NEW YORK (Reuters) – Stocks pared gains on Friday after pending home sales fell far more than expected in April.

Pending home sales dropped to a seven-month low in April, a trade group said, dealing a blow to hopes of a recovery in the housing market.

The Dow Jones industrial average (.DJI) was up 32.39 points, or 0.26 percent, at 12,435.15. The Standard & Poor’s 500 Index (.SPX) was up 4.12 points, or 0.31 percent, at 1,329.81. The Nasdaq Composite Index (.IXIC) was up 7.05 points, or 0.25 percent, at 2,789.97.

(Reporting by Angela Moon, Editing by Kenneth Barry)

NEW YORK (Reuters) – Signs of a Wall Street sell-off are all over the place, but U.S. stocks might well survive another week relatively unscathed if investors keep betting on sectors less vulnerable to an economic downturn.

Pressure for a correction in the stock market has been building up in the past few weeks as the euro and oil prices fell in tandem, knocking down shares of energy companies and dollar-sensitive multinationals.

Still, investors have averted a broad sell-off by diving into shares of companies that are less vulnerable to the economic cycle, including well-known defensive sectors such as utilities and household products, but also large-cap companies with steady earnings performance.

That strategy may hold the market afloat for a little longer. But with the end of the Federal Reserve’s easy money policies just around the corner, investors are becoming more sensitive to risk in general.

“There is good reason for a pause, there is good reason to be conservative in here, and there is good reason to raise some cash ahead of a summer correction and a better buying opportunity,” said Richard Ross, global technical strategist with Auerbach Grayson in New York.

The sharp sell-off in commodities markets earlier this month was seen by many as the first warning sign of a coming market correction. The U.S. dollar has been strengthening since then, in another sign that appetite for risk is dwindling.

Next month’s end of the Fed’s massive bond-buying program, also known as quantitative easing, is expected to knock down the value of stocks, commodities and the euro, a recent Reuters poll of 64 analysts and fund managers found.

CONSUMER STAPLES BACK IN STYLE

Ross, who believes that a correction could come at any moment, warned that Wall Street remains close to multi-year highs as investors head into a traditional period of weak seasonality that stretches from May to November.

The Standard & Poor’s 500 index (.SPX) has kept its year-to-date gain of 6 percent for the past two weeks, as defensive sectors such as utilities advanced while more volatile technology shares posted losses.

Despite the rotation between sectors, the S&P 500 has been trading in a narrow range between 1,330 and 1,340, indicating Wall Street’s lack of direction. Most technical analysts agree that the market is poised to break out of that range soon — either with a sell-off or a rally.

Robert Sluymer, an analyst with RBC Capital Markets, said there is no technical evidence that the current market cycle has peaked. He recommended investors keep building exposure to defensive themes, while getting out of cyclical stocks.

Among the defensive sectors favored in the current environment, Standard & Poor’s Equity Strategy recommended the stocks in the S&P 500 Consumer Staples Index (.GSPS). For the week, this index was up 0.6 percent.

With the earnings season coming to a close, Wall Street will have just a sprinkling of marquee names set to release quarterly results in the coming week. On tap are earnings from Campbell Soup (CPB.N), Costco Wholesale Corp (COST.O) and HJ Heinz Co (HNZ.N), whose stocks are in the S&P 500 Consumer Staples Index. Preppies, take note: Polo Ralph Lauren Corp (RL.N) and Tiffany & Co (TIF.N) are also set to release their results. These companies’ outlooks could shed light on the

consumer’s mindset and headwinds facing the retail sector.

As far as economic indicators are concerned, there’s no data with overwhelming star power. The calendar includes new home sales for April, a second look at first-quarter gross domestic product, personal income and consumption for April and the final reading for May on consumer sentiment from the Thomson Reuters/University of Michigan Surveys of Consumers.

So investors could very well be at the mercy of the headlines from Europe, where fears about a possible debt restructuring by Greece are on the rise.

With the euro, commodities and stocks trading with extraordinary correlation, investors should look at the euro-dollar trade for direction, said Ross of Auerbach Grayson.

“If you continue to see the dollar strengthening,” he said, “it should provide a headwind for commodities and for the S&P.”

(Editing by Jan Paschal)

SINGAPORE (Reuters) – Japanese stocks held steady on Tuesday after early losses on signs of a slowdown in the U.S. economic recovery and oil fell for a second session as the dollar edged higher on euro debt concerns.

European shares were expected to slip for the fourth straight session, with a slide in commodity prices seen weighing on heavyweight miners and oil majors.

Britain’s FTSE 100 (.FTSE), Germany’s DAX (.GDAXI) and France’s CAC 40 (.FCHI) were all seen opening down almost 1 percent, according to financial spread betters.

Japan’s benchmark Nikkei average (.N225), the key Asian market for overseas investors, has slumped more than 3 percent over the last three sessions, in line with a pullback in other riskier assets as investors factor in the expected end of the U.S. Federal Reserve’s stimulus program in June.

The Nikkei closed up just 0.09 percent, after earlier slipping close to 0.7 percent, while the broader Topix (.TOPX) was off 0.08 percent.

“All eyes are now on commodities,” said Takashi Ohba, a senior strategist at Okasan Securities. “Normally falls in commodities would be considered positive for the economy, but these days that market has become a barometer for risk-taking — commodities are lower, so everyone is in a ‘risk-off’ mood.”

Seoul shares ended flat, overcoming some early pressure from foreign investor selling and declines in technology issues such as Samsung Electronics (005930.KS).

Tech shares fell overnight on Wall Street and were the biggest drag on MSCI’s index of Asia Pacific shares outside Japan. The index fell in the morning and was up 0.17 percent at 2 a.m. EDT. Samsung dropped more than 1 percent.

Some Asian markets, including Singapore, were closed for a holiday.

The dollar rose as high as around 81.23 yen after stop-loss buy orders were triggered slightly above 81 yen in a thin market.

The dollar index (.DXY), a measure of its value against a basket of currencies, was up 0.18 percent, making dollar-denominated commodities more expensive for holders of other currencies.

The euro advanced to around 115.40 yen and $1.4181. It hit a seven-week low against the dollar the previous day and remains vulnerable due to concerns about the debt of peripheral euro zone countries.

The weekend arrest in New York of International Monetary Fund Managing Director Dominique Strauss-Kahn on charges of attempted rape sent shock waves through French political circles and left the IMF in turmoil, but had no apparent effect on Asian markets.

U.S. crude futures extended declines on Tuesday amid the global economic concerns and as U.S. industry data was expected to show a fourth-straight rise in the top consumer’s crude oil inventories.

ICE Brent for July was down 26 cents at $110.58 a barrel. U.S. crude futures for June delivery fell 22 cents to $97.13.

Gold was steady and silver rebounded from a 5 percent drop the previous session, as some Asian physical buying offset the influence of a slightly stronger dollar.

Spot gold edged up to $1,494 an ounce. Inflation concerns rose in Europe as energy costs pushed up euro zone inflation in April, potentially adding to the appeal of bullion as a hedge.

A gauge of manufacturing in New York state fell much more than expected to provide the latest sign of a slowdown in the U.S. economic recovery, which pulled U.S. stocks and oil prices lower on Monday.

The Dow Jones industrial average (.DJI) lost 0.38 percent on Monday. The Standard & Poor’s 500 Index (.SPX) fell 0.62 percent and the Nasdaq Composite Index (.IXIC) dropped 1.63 percent.

(Writing by Nick Macfie)

NEW YORK (Reuters) – Stocks fell about 1 percent on Friday as a strengthening in the dollar due to global uncertainty caused a drop in commodity-related and financial shares.

The euro fell against the dollar as investors refocused on euro zone debt before meetings by finance officials in Brussels and as the Federal Reserve moved closer to ending a stimulus program.

The dollar (.DXY) gained 0.9 percent against a basket of currencies. For details, see

Stocks have been subjected to turbulence over the past week, with markets becoming highly sensitive to swings in the dollar as it forces reversals in commodity sensitive areas.

U.S. crude futures lost 0.9 percent and the S&P energy index (.GSPE) lost 0.7 percent.

Financials were among the hardest hit on the fears the euro zone debt crisis could worsen. The KBW Bank index (.BKX) dropped 1.7 percent, weighed down by 2 percent drop in JPMorgan Chase & Co (JPM.N) to $43.06.

“There is clearly a move into the dollar, which is again a flight to safety and a flight to quality taking place. That is the play. It’s all one trade, it’s the dollar, it’s the euro, it’s the gold, it’s the financials now,” said Paul Mendelsohn, chief investment strategist at Windham Financial Services in Charlotte, Vermont.

“You’ve got these major financial shattering events potentially lurking out there that you don’t know how to play. Therefore, my view is when in doubt, get out.”

The CBOE Volatility Index (.VIX), used as an indicator of investor fear, surged 8 percent.

The Dow Jones industrial average (.DJI) dropped 121.48 points, or 0.96 percent, to 12,574.44. The Standard & Poor’s 500 Index (.SPX) dropped 11.89 points, or 0.88 percent, to 1,336.76. The Nasdaq Composite Index (.IXIC) dropped 29.38 points, or 1.03 percent, to 2,833.66.

In recent weeks, leadership in the S&P 500 has shifted from cyclical sectors like energy and basic materials to sectors with more stable growth like healthcare and utilities.

The new leadership sectors outperformed on Friday, with the Morgan Stanley Healthcare Payor index (.HMO) up 0.1 percent and the S&P consumer staples sector off 0.2 percent.

Economic data showed U.S. inflation raced to a 2-1/2 year high in April as food and gasoline prices rose, but there was little sign of a broader pick-up in consumer prices while an indicator of consumer sentiment rose.

Yahoo Inc (YHOO.O) shares fell 4.3 percent to $16.44 after it said the Alibaba Group restructured the ownership of Alipay, one of China’s largest online payment businesses, without the knowledge of Yahoo and Softbank, two of its stakeholders.

(Reporting by Chuck Mikolajczak; Editing by Kenneth Barry)

NEW YORK (Reuters) – U.S. stocks dipped on Tuesday as a move higher in the dollar pressured commodity prices and investors weighed the potential for some consolidation in equities after a recent run-up.

The dollar edged off three-year lows as a buildup of bets to sell the currency, based on loose U.S. monetary policy, ran out of steam. The dollar index (.DXY), measured against a basket of major currencies, was last up 0.3 percent.

Brent crude fell 1.3 percent to $123.53 a barrel, and U.S. crude futures shed 1.1 percent to $112.31. The S&P energy index (.GSPE) lost 1.2 percent.

Gold slipped Tuesday from record highs above $1,570 an ounce. The NYSEArca gold bugs index (.HUI) dipped 1.7 percent.

A rise in the greenback makes commodities cheaper as they are priced in U.S. dollars.

“Some of the markets were getting a little overdone,” said Frank Lesh, a futures analyst and broker at FuturePath Trading LLC in Chicago.

“Markets gets overbought, dollar is oversold — yes. You’ve got a corrective bounce of the dollar coming, it’s not a change in trend by any means.”

The Dow Jones industrial average (.DJI) dropped 10.25 points, or 0.08 percent, to 12,797.11. The Standard & Poor’s 500 Index (.SPX) slipped 2.79 points, or 0.20 percent, to 1,358.43. The Nasdaq Composite Index (.IXIC) shed 4.93 points, or 0.17 percent, to 2,859.15.

Pfizer Inc (PFE.N) fell 2.4 percent to $20.52 after the drugmaker reported lower-than-expected quarterly revenue.

MasterCard Inc (MA.N) rose 3.4 percent to $284.62 after the world’s second-largest credit card processing network posted a 24 percent jump in quarterly profit.

At 10 a.m. EST <1400 GMT>, the Commerce Department releases March factory orders. Economists forecast a 1.9 percent rise, compared with a 0.1 percent drop in February.

(Reporting by Chuck Mikolajczak; editing by Jeffrey Benkoe)

SINGAPORE (Reuters) – Asian shares fell on Tuesday, with falling commodity prices dragging on mining stocks, while the Aussie dollar eased after the central bank held interest rates and Canada’s currency rose as the ruling Conservatives won a federal election.

The U.S. dollar struggled to pull away from a three-year trough, while oil and copper prices eased as investors focused on the still-fragile state of the recovery in many developed economies.

A slew of data this week will help gauge the strength of the world economy, with particular focus on U.S. non-farm payrolls on Friday.

“Everyone is waiting to see how uncertainties in the macro-economic situations of major economies will pan out,” China Futures Co. analyst Yang Jun said.

European shares were expected to open mostly down, with Euro Stoxx 50 futures shedding 0.4 percent, while S&P 500 futures fell 0.3 percent, pointing to a weaker start on Wall Street. Financial spreadbetters called London’s FTSE 100 (.FTSE) flat-to-higher after a four-day weekend. (.EU) (.N)

MSCI’s broadest index of Asia-Pacific shares excluding Japan (.MIAPJ0000PUS) fell 0.9 percent, with South Korea (.KS11) stocks losing 1.3 percent and Australian stocks (.AXJO) down 0.8 percent. Japan’s financial markets were closed for a public holiday. (.AX) (.KS)

“Our number one headwind for equities right now is the Aussie dollar,” said IG Markets institutional dealer Chris Weston.

The U.S. currency has been under pressure for months due to the Federal Reserve’s ultra-loose monetary policy, which has opened up a yield gap between the dollar and currencies such as the euro and the Aussie.

DATA SURPRISE

The dollar index (.DXY), which tracks the dollar against a basket of major currencies, crept up 0.1 percent, still not far from three-year low plumbed in New York trade.

The euro was around $1.4815, having risen to a 17-month high above $1.49 after surprisingly strong manufacturing data boosted the chances of another European Central Bank interest rate rise.

The Aussie eased from a 29-year high above $1.10, to trade around $1.09 after the Reserve Bank of Australia kept interest rates unchanged, as expected.

The central bank, the first in the developed world to begin tightening policy in late 2009, said underlying inflation was likely to head higher, laying the groundwork for further rate rises in the months to come.

“That addition to the statement suggests they’re preparing to move in the next few months — though there’s no sense of urgency about it,” said Brian Redican, a senior economist at Macquarie.

LOONIE GAINS

The Canadian dollar edged up as provisional results from Canada’s election showed the pro-business Conservatives cruising to victory, on course to transform their minority administration into a majority government.

The loonie has lagged other commodity-linked currencies, in part due to uncertainty about the outcome of Monday’s election, with the opposition New Democrats pledging to raise corporate taxes, increase social spending and toughen climate change policies.

“I think generally this is probably very good for the Canadian dollar,” said Firas Askari, head of foreign exchange trading at BMO Capital Markets. “We haven’t had a majority government in some years and I think this provides a measure of stability that the market was looking for.”

Oil, the asset often most sensitive to perceptions of geopolitical risk, fell nearly half a percent, but remained about $2 above the Monday low hit after news of the killing of Osama bin Laden in Pakistan by U.S. special forces.

While the death of bin Laden could reduce the threat against the United States by militant Islamists in the long-term, the potential for retaliatory attacks in the short-term would support prices, analysts said.

“The potential of violence from retaliation has more upside than downside risks, and would support the market,” said Serene Lim, commodities analyst with ANZ Bank in Singapore.

U.S. crude futures eased 50 cents to $113.02 a barrel, while Brent crude fell 42 cents to $124.70.

Spot gold was a little firmer at $1,547.59 an ounce, after retreating from a record $1,575.79, and copper fell 0.3 percent.

Weaker industrial metals prices dragged on shares of big mining firms, with BHP Billiton (BHP.AX) down 1.4 percent and Rio Tinto (RIO.AX) 0.7 percent.

(Editing by Richard Borsuk)

TOKYO – Markets in Japan and South Korea rose Monday amid holiday-thinned trading in Asia after U.S. stocks gained on positive earnings to round out their best month since the end of last year. The dollar rose and oil prices extended declines after news of the death of Osama bin Laden.

Japan’s Nikkei 225 gained 1.5 percent to 9,997.91. Asia’s largest market will be closed Tuesday through Thursday amid Japan’s annual Golden Week holiday. South Korea’s benchmark Kospi index, meanwhile, advanced 1.5 percent to 2,224.36.

In currencies, the dollar got a boost after news of bin Laden’s death. President Barack Obama announced that the mastermind behind the deadly Sept. 11, 2001, terror attacks in the United States was killed in Pakistan in a U.S.-led operation.

The dollar rose to 81.53 yen from 81.10 yen. The euro, meanwhile, was marginally weaker at $1.4784 from $1.4839 late Friday in New York.

The greenback was bought on the belief that “terror risk will get smaller” for the United States after bin Laden’s death, said Yuji Kameoka, chief currency strategist at Daiwa Securities Capital Markets in Tokyo. He said that yen weakness and a decline in the price of crude oil were boosting Japanese stock prices.

Oil prices eased off 2 1/2-year highs to below $113 a barrel Monday after Obama announced bin Laden’s death.

Benchmark crude for June delivery was down $1.38 to $112.55 in electronic trading on the New York Mercantile Exchange. The contract settled at $113.93 per barrel on the Nymex on Friday and reached $114.18 during in the session, the highest since September 2008.

Stock trading in Asia was thin amid a slew of holidays this week in the region. Hong Kong’s Hang Seng index and mainland China’s Shanghai Composite Index were closed for holidays as were stock markets in Taiwan, Malaysia and Singapore.

Australia’s S&P/ASX 200, meanwhile, fell less than 0.1 percent to 4,823.60.

The Dow Jones industrial average rose Friday on positive earnings news after construction equipment manufacturer Caterpillar reported strong first-quarter profit.

The Dow rose 47.23 points Friday, or 0.4 percent, to close at 12,810.54, rounding out April 4 percent higher, its best month since December.

Caterpillar, world’s largest maker of mining and construction equipment, rose 2.5 percent after its earnings increased more than fivefold. The company also raised its sales and profit forecast for the year.

Japan’s Komatsu Ltd., the world’s No. 2 equipment maker, rose 2.8 percent in Tokyo.

Broader indices in the U.S. also gained.

The Standard & Poor’s 500 index rose 3.13 points, or 0.2 percent, to close at 1,363.61. The index gained 2.8 percent in April. The Nasdaq composite added 1.01 point to 2,873.54. It rose 3.3 percent for the month.

HONG KONG (Reuters) – The U.S. dollar plumbed a near 3-year low against other major currencies on Wednesday before a Federal Reserve decision, which is expected to reinforce an ultra-easy policy stance and drive more capital to buoyant emerging Asian stock markets.

While Fed chairman Ben Bernanke is expected to paint a cautious picture on the world’s largest economy, Asian and Latin American central banks by contrast are still tightening monetary policy and some are using currency appreciation to check price pressures.

The European Central Bank raised its policy rate this month for the first time since mid-2008 and is expected to raise rates at least once more this year.

That has given new legs to the “carry trade”, in which investors borrow in a low-yielding currency to invest in higher-yielding assets or currencies.

Investors have been snapping up the high-yielding Australian dollar and South Korean shares (.KS11), while showing heavy interest in Indonesia’s upcoming dollar bond.

Market players also added to bearish dollar bets, especially against the euro and the Swiss Franc, on expectations the Fed will cling to a near-zero interest rate policy even as it lets a $600 billion bond purchase program wind down in June.

“Focus will be on the inaugural press conference and whether Bernanke is shifting along the dove-hawk scale,” said Michael Sneyd, analyst at Societe Generale.

“Attention will also be on comments for how the Fed may respond to U.S. fiscal tightening. All-in-all, the meeting is likely to give the green light for risk appetite and for dollar bears to continue to be bearish.”

The dollar index (.DXY), which tracks its performance against a basket of major currencies, hit the lowest since August 2008 at 73.483, before cutting some losses.

FLOWS PICK UP

Asian shares rose after robust gains posted by U.S. indices overnight, driven by better-than-expected performances from U.S. corporate heavyweights. U.S. stock futures rose 0.1 percent, suggesting a higher open on Wall Street.

South Korea’s benchmark KOSPI index (.KSII) rose to a record high for the third consecutive session before giving back some gains as investors took profits on automaker shares. It ended flat. Hong Kong shares (.HSI) rose, boosted by a broad rally in financials ahead of results from Chinese banks.

MSCI’s index of Asia Pacific shares outside Japan (.MIAPJ0000PUS) rose to its highest level since January 2008, and was up 0.5 percent on the day.

Japan’s Nikkei (.N225) closed up 1.4 percent, supported by rebounding shares of large exporters. But it could face downward pressure after ratings agency Standard & Poor’s revised its outlook on Japan’s sovereign debt to negative.

Offshore flows into non-developed Asian markets have picked up after a January slump, with both emerging markets equity and bond fund groups extending their longest inflow streaks since mid-January, according to fund tracker EPFR Global.

The order book for Indonesia’s eagerly awaited 10-year dollar-denominated bond has grown to around $5 billion for an issue expected to be between $1 billion to $1.5 billion in size, IFR said. Indonesia’s markets have been a favorite among global investors because of the country’s relatively high yields, decent economic growth and demographics.

China let the yuan rise to a post-2005 revaluation high, triggering gains in emerging Asian currencies.

Helping the case of carry trades, the Australian dollar shot to a new 29-year peak above the $1.0800 per U.S. dollar after higher-than-expected first quarter inflation suggested the central bank will eventually have to resume tightening.

SILVER PULLBACK

The dollar’s woes have been further compounded by a recent drop in U.S. Treasury yields as rate traders bet that any Fed tightening would be a slow and gradual process.

In Asian time, the U.S. 10-year note yield was at 3.32 percent, just above a one-month low of 3.31 percent before the Fed decision. Ten-year yields are down by about 30 basis points since this month’s highs.

In commodity markets, spot silver bounced 0.9 percent to around $46 per ounce level after falling by nearly 5 percent overnight. High volatility and the expiry of U.S. silver options added to the intensity of the decline of the precious metal.

Despite the sharp pullback in silver which rippled over into other commodities, Brent held above the $124 per barrel line, as Libya’s civil war and violence-tinged unrest Syria and Yemen helped limit bearish sentiment on a price slide.

SINGAPORE (Reuters) – The Australian dollar hit a fresh 29-year high and South Korea’s benchmark share index touched another record intraday high on Monday, suggesting investors were still eager to embrace risk and higher-yielding assets.

Commodities pushed higher with spot gold hitting a record high of $1,517.71 an ounce and U.S. silver futures scaling a 31-year peak.

The dollar edged up 0.1 percent against a basket of currencies to 74.086 (.DXY), but remained within sight of a trough of 73.735 struck last week, its lowest since August 2008.

The dollar rose 0.4 percent against the yen to 82.22 yen, supported by dollar-buying by Japanese importers and as traders took aim at stop-loss dollar buying orders said to be lurking near 82.50 yen.

“The market is thin today because London is closed today, and people are basically just trying to trigger stops,” said a trader at a Japanese bank, referring to Easter Monday holidays across much of Europe.

Markets are looking to a news conference by Federal Reserve Chairman Ben Bernanke on Wednesday after the bank’s two-day policy meeting to see how the central bank plans to exit from its super-easy monetary policy.

Traders are also nervously watching Greece after newspaper reports that it is considering extending maturities on its sovereign debt as one option for a possible restructuring.

Most Asian stock markets were sluggish as they reopened after the long Easter weekend, but South Korea’s benchmark stock index clawed above a peak scaled last week and hit another record intraday high. The benchmark index was last up 0.9 percent at 2,217.59 (.KS11).

Japan’s benchmark Nikkei share average dipped 0.1 percent (.N225), but gains in shippers helped temper losses.

Japan’s Nikkei business daily reported at the weekend that earnings sharply rebounded at three major marine transport companies in the year that ended on March 31.

Mitsui OSK Lines (9104.T) rose 2 percent, Nippon Yusen (9101.T) gained 1.3 percent and Kawasaki Kisen (9107.T) added 0.7 percent.

“The shippers’ gains are straightforward. The expectations for good results reflect strong demand in the global economy and they suffered relatively little damage from the March earthquake,” said Naoki Fujiwara, a fund manager at Shinkin Asset Management.

The Australian dollar, which tends to attract buying when the global economy is doing well and commodity prices rise, touched a 29-year high of $1.0777. It later trimmed its gains to stand at $1.0735, little changed on the day.

U.S. crude futures oil rose as violence in Syria and Yemen escalated over the weekend, stirring fears of supply disruptions from the Middle East and North Africa.

NYMEX crude for June delivery edged up 30 cents a barrel to $112.59.

U.S. 10-year Treasuries were little changed in price to yield 3.396 percent, down about 1 basis point from late U.S. trade on Thursday. The U.S. Treasury market was closed on Friday for a U.S. holiday.

Stock markets in Australia and Hong Kong were closed on Monday for a holiday. (Additional reporting by Ayai Tomisawa and Hideyuki Sano in Tokyo; Editing by Kim Coghill.)