Shares in oil, gas and minerals were among the top gainers after global crude and copper prices ticked up. But volumes were thin, with many investors waiting on the sidelines until January.

Major Asian stock markets closed flat, with Tokyo, Seoul and Shanghai all overcoming early losses to finish barely changed. European stock markets were firmer in early trade.

Tokyo's benchmark Nikkei index ended up a marginal 0.09 per cent as shares in insurance firms soared on reports of a three-way merger to form the country's largest non-life insurer.

But dealers said there was no firm direction. The Tokyo market closes with a half-day session on Tuesday and reopens on Jan 5.

'Since we only have one more morning session tomorrow before the market closes for this year, investors would not want to take positions before the long holidays,' said Mr Daisuke Uno of Sumitomo Mitsui Banking Corp.

Asian markets have tumbled this year as the global credit crisis saps up liquidity and drags down the world economy. The International Monetary Fund's top economist warned last week of a second Great Depression.

Some dealers doubted that global stock markets would have a clear direction until US president-elect Barack Obama takes office in Jan 20, with dealers hoping he can reinvigorate the ailing US economy.

In the more immediate future, dealers were waiting for Tuesday's release in the United States of consumer confidence data for December.

'I wouldn't be surprised to see our market rise if US consumer confidence data aren't worse than expected,' Macquarie Private Wealth senior private client adviser Marcus Droga told Dow Jones Newswires in Sydney.

Sydney ended up 1.1 per cent, while Hong Kong added one per cent and Singapore was up 1.13 per cent in late trade. But Taipei closed down 0.20 per cent, while Bangkok and Mumbai were both down at midday.

Seoul closed marginally lower following an early sell-off after the central bank said South Korea's capital investment is expected to drop for the second consecutive year.

'While most investors remained on the sidelines after they closed their books for the year, local pension funds actively picked up stocks in the later session,' said Mr So Jang-ho, an analyst at Samsung Securities.

Shanghai also ended just slightly lower as steelmakers dragged down the market on concerns over weak corporate performances due to the global crisis.

'Investors' sentiment remains weak as they are still worrying about corporate earnings in the fourth quarter,' said Mr Wang Junqing, an analyst at Guosen Securities. -- AFP