US stocks moved higher amid mixed earnings reports, bouncing back after last week's losses. The Dow Jones Industrial Average gained 19.66 points, or 0.14 per cent, to 14,567.17. The broad-based S&P 500 added 7.25 points, or 0.47 per cent, to 1,562.50. The tech-rich Nasdaq Composite Index jumped 27.50 points, or 0.86 per cent, to 3,233.55.

EUROPEAN STOCKS, BONDS

European stocks finished mixed as traders balanced political progress in Italy with disappointing earnings and housing data from the US.

On the the foreign exchange markets the US dollar dominated sentiment as it spiked close to the 100 yen mark after the G20 cautiously endorsed the Bank of Japan's huge stimulus measures despite wariness from emerging countries.

At close on Monday, London's FTSE 100 index of leading companies was 0.09 per cent lower at 6,280.62 points, in Paris the CAC 40 was flat at 3652.13 points, while in Frankfurt the DAX 30 gained 0.24 per cent to 7478.11 points.

The best performing European market was Italy's FTSE MIB index, which jumped 1.57 per cent to 16,007.10 points on investor relief after the surprise re-election of President Giorgio Napolitano over the weekend. The euro edged down to $US1.3048 from $US1.3049 late on Friday.

ASIA-PACIFIC STOCKS, BONDS

Asian markets mostly climbed, with Tokyo surging as the US dollar pushes back towards the 100 yen mark after the G20 cautiously endorsed the Bank of Japan's huge stimulus measures.

Chinese shares dipped, however, as insurers suffered a sell-off after an earthquake struck Sichuan province, leaving more than 200 dead or missing and destroying villages. Tokyo jumped 1.89 per cent, or 251.89 points, to 13,568.37, while Seoul was up 1.03 per cent, or 19.56 points, at 1,926.31. Sydney rose 0.70 per cent, or 34.7 points, to 4,966.6.

Hong Kong added 0.14 per cent, or 30.80 points, to 22,044.37 but Shanghai was 0.11 per cent lower, shedding 2.47 points to 2,242.17. The yen added to gains made in New York on Friday after the Group of 20 economic powers agreed that Japan's huge monetary easing measures unveiled this month were necessary to boost the country's stagnant economy.

The NZX 50 Index rose 39.156 points, or 0.9 per cent, to 4483.65, a record high close.

The Australian market looks set to open higher after gains on Wall Street and a mixed performance on European markets as traders balanced political progress in Italy, with the surprise re-election of President Giorgio Napolitano, with disappointing earnings and housing data from the US. At 0737 AEST on Tuesday, the June share price index futures contract was up 13 points at 4,972.

No major economic news is expected on Tuesday.

In equities news, Evolution Mining March is due to post quarter results. Meanwhile, Aurizon chief executive Lance Hockridge is slated to speak at a CEDA lunch.

In Australia, the market on Monday closed higher, led by resources stocks that rebounded from last week's battering because of falling commodity prices. It was the second consecutive day of gains on the ASX, with most sectors having positive days. The benchmark S&P/ASX200 index was up 34.7 points, or 0.9 per cent, at 4,966.6 points, while the broader All Ordinaries index was up 32.4 points, or 0.66 per cent, to 4,955.4 points.

COMMODITIES

Oil prices rose in choppy end-of-contract trading, as bargain-hunters moved in following last week's plunge that prompted speculation about a possible cut to OPEC output. In New York on Monday, WTI light sweet crude for delivery in May, added 75 US cents from Friday to $US88.76 a barrel, on the final day of the contract.

In London, Brent North Sea crude for June delivery gained 74 US cents to $US100.39 a barrel.

Gold futures continued to rebound from last week's historic sell-off, locking in a 1.8 per cent rise as futures investors and buyers of gold coins and bars continued to step into the market.

The most actively traded contract, for June delivery, on Monday rose $US25.60, or 1.8 per cent, to settle at $US1,421.20 a troy ounce on the Comex division of the New York Mercantile Exchange.

On April 15, gold prices fell nine per cent, posting their largest one-day slide since the early 1980s. The slump, which followed steep losses the previous session, was triggered in part by concerns Cyprus may sell some of its gold reserves to fund its bailout.

Traders said the selling was exacerbated by weak Chinese growth data and technical selling as sentiment toward the metal soured after more than a year of flat to lower prices.

Base metals closed mixed despite copper prices nearly falling into a bear market in early trade.

Analysts say the long-term outlook for the metals remains upbeat. At the close of open-outcry trading on Monday, LME three-month copper was down 0.8 per cent at $US6,930 a metric ton.

Although closing lower, the metal held up well throughout the session, defying underwhelming US housing data and a weaker start to European trading, as gold prices staged a moderate recovery.

US data showed existing-home sales unexpectedly declined 0.6 per cent in March to a seasonally-adjusted annual rate of 4.92 million. The data have important implications for copper, which is used for wiring and has many electrical applications in the domestic construction sector. COMPILED FROM MORRISON SECURITIES PTY. LTD.