Shares eye 5-year high after Abe win, yen choppy

World shares were testing a five-year high on Monday as a strengthening of Japanese Prime Minister Shinzo Abe's grip on power in weekend elections were seen as a boost for his radical stimulus policies.

European stocks saw a steady start to the week, dipping 0.1 percent as upbeat results from Philips and Julius Baer helped offset the temptation to book profits on the 9 percent gain the FTSEurofirst 300 index has made since June.

A 0.5 rise in Japanese stocks had lifted Asia's markets overnight after Abe's big Upper House election win, though a rebound in the yen prompted some profit taking on the Nikkei cutting its early gains in half.

The rise left MSCI's world share index within touching distance of the five-year high it hit at the end of May. It added to the recent gains built on generally strong company earnings and reassurances of central bank support.

"We are seeing a bit of position adjustment today but we have got a general positive outlook and I don't think the trend is going to break," said Societe Generale strategist Kit Juckes.