Asia's stock markets made a tentative start to the fourth quarter in holiday-thinned trade on Monday, nudging sideways while the dollar held firm and a last-minute deal to avert a U.S. government shutdown lifted S&P 500 futures.
Markets in India, Hong Kong and China were closed for a holiday.
Japan's Nikkei (.N225) jumped as much as 1.7%, before retreating to flat in the mid-afternoon. The yen fell to within a whisker of 150-per-dollar and its weakness is a boon for exporters' and the pricing of their foreign earnings in yen.
An eleventh-hour deal to avoid a U.S. government shutdown, struck over the weekend, also helped the mood and lifted U.S. stock futures by 0.5% in Asia. The weekend's stopgap funding bill allowed the government to keep operating through Nov. 17, and means key data releases including Friday's monthly payrolls report can go ahead on time.
European futures rose 0.2%.
"The shutdown risks are only delayed, not eliminated," TD Securities strategists wrote in a client note.
"A sense of reduced uncertainty is likely to drive a small relief in markets," but "market volatility is likely to remain elevated as investors wait for the next catalyst, which is likely to be top-tier data."
Japanese stocks were also boosted by the Bank of Japan's quarterly Tankan survey, which showed an improvement in business sentiment. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was flat.
