Asian stocks rose on Monday as investors looked past the Federal Reserve's discount rate hike to signs of strength in the U.S. economy, while the euro firmed on talk that a quick bailout is being sketched out for debt-stricken Greece.
A pause in the dollar's rally spurred gold to its highest level in a month, and oil rose to a six-week high on concerns about a refinery workers' strike in France.
The MSCI index of Asian stocks traded outside Japan rose 2.2 percent, helped by shares in the materials and energy sectors as commodity prices pushed higher.
Japan's Nikkei stock average gained over 3 percent on the back of exporters whose shares were boosted by a weak yen, while recall-hit Toyota Motor Corp rebounded 3 percent.
"Investors on Friday were worried about the impact of the U.S. discount rate hike on Wall Street, but U.S. markets in the end were quite settled," said Nagayuki Yamagishi, a strategist at Mitsubishi UFJ Securities.
The Fed said late on Thursday that it would raise the interest rate it charges banks for emergency loans to 0.75 percent from 0.5 percent, taking a step towards normalising emergency policy used to fight the worst financial crisis since the Great Depression.
Asian stock markets fell heavily on Friday in the first global reaction to the move, but after initial nervousness U.S. investors preferred to view it as a sign that the economy was healing, helping stocks on Wall Street close out their best week of the year.
Asian share markets were also buoyed by a steady start in Chinese markets as they re-opened after a week-long holiday and had their first chance to react to a surprise central bank tightening move on Feb 12.
Markets had feared a heavy selloff in Shanghai after the People's Bank of China raised banks' reserve requirements for the second time this year, but China's key stock index was little changed by late morning on Monday.
Hong Kong's benchmark Hang Seng Index rose 2.4 percent, lifted by oil producers PetroChina and CNOOC on firmer oil prices and signs of stability in Chinese markets.
South Korean shares snapped a two-day losing streak with the benchmark index up more than 2 percent, boosted by a rebound in the banking sector and by the strength in shipping stocks amid hopes of an industry turnaround.
"Asian markets at these levels are quite cheap and there is reasonable good growth in the region over the next 1-2 years so we think that these levels are buying levels," said Khiem Do, head of the Asia multi-asset group at Baring Asset Management, which oversees $50 billion.
"We still like North Asia — Taiwan, South Korea and China."
EURO FIRMS, DOLLAR DOZES
The euro jumped to as high as $1.3641 from $1.3607 late on Friday, before selling by some investment banks saw it give up most of those gains, traders said.
German weekly Der Spiegel reported on Saturday that Germany's finance ministry had prepared plans in which countries using the single currency would provide aid worth between 20 billion and 25 billion euros for debt-laden Greece.
The ministry refused to comment on the report.
The dollar index eased 0.3 percent to 80.39, after rallying to an eight-month high of 81.342 on Friday.
Oil jumped 58 cents to above $80 a barrel, adding to its recent gains amid concerns about an extended refinery strike in France and escalating tensions over Iran's nuclear program.
