Many markets seesawed before heading modestly higher, led by Hong Kong and Shanghai stocks after Chinese Premier Wen Jiabao said on Saturday the economy was doing 'better than expected' as a massive stimulus package produces results.

Coupled with more pledges to pull the economy out its slump, the comments from Mr Wen, also the nation's top economic official, gave investors more reason to hope China will heal sooner and help both Asian and overseas markets along the way.

Investors were also awaiting results that could test a growing belief that the world economy and banking system have turned a corner. Among the hundreds of US companies due to report are Bank of America, Coca-Cola, Microsoft, IBM and McDonald's.

So far, rosier-than-expected earnings from financial giants like Citigroup and Goldman Sachs have buoyed optimism of a recovery and given further impetus to a six-week rally.

Still, with a number of markets already up more than 20 per cent in less than two months, many are becoming wary of another bubble in the making and say any negative surprises could cause a bout of selling.

'Equities markets are beginning to be quite detached from the underlying economic fundamentals - once again,' said Kirby Daley, senior strategist at Newedge Group in Hong Kong. 'The worst is far from over.'

On Friday in New York, stocks closed marginally higher as earnings from Citigroup and General Electric surpassed the market's expectations. The Dow Jones industrial average rose 5.90, or 0.1 per cent, to 8,131.33. The Standard & Poor's 500 index added 4.30, or 0.5 per cent, to 869.60. -- AP

TOKYO
Japanese share prices closed up 0.19 per cent on Monday, rebounding from early profit-taking as investors remained hopeful of a recovery in the global economy.

The Nikkei-225 index rose 17.17 points to 8,924.75. The broader Topix index of all first section shares gained 2.73 points, or 0.32 per cent, to 848.30.

HONG KONG
Hong Kong share prices closed 0.96 per cent higher on Monday, as investors managed claw back from earlier losses, dealers said.

The benchmark Hang Seng Index closed up 149.64 points at 15,750.91.

Turnover was HK$7.09 billion.

SHANGHAI
Chinese shares closed up 2.14 per cent on Monday, led by gains in airlines on expectations for better earnings this year, dealers said.

The benchmark Shanghai Composite Index, which covers A and B shares, was up 53.52 points at 2,557.46 on turnover of 140.5 billion yuan (S$31 billion).

The Shanghai A-share index rose 56.21 points, or 2.14 per cent, to 2,684.51 on turnover of 140.1 billion yuan, while the Shenzhen A-share index added 20.04 points, or 2.25 per cent, to 910.50 on turnover of 77.6 billion yuan.

KUALA LUMPUR
Malaysian shares closed up 0.33 per cent on Monday due to rotational buying interest in laggard index-linked stocks, dealers said.

The Kuala Lumpur Composite Index gained 3.20 points to 968.37, off the day's low of 957.57, with decliners outpacing gainers 327 to 233. -- AFP