U.S. STOCKS, BONDS

US closed mixed, with Bank of America advancing strongly on news of a key mortgage securities settlement. The broad-based S&P 500 edged to a new all-time closing high, rising 3.08 (0.19 per cent) to 1,617.50.

The Dow Jones Industrial Average slipped 5.07 (0.03 per cent) to 14,968.89 and the tech-rich Nasdaq Composite Index rose 14.34 (0.42 per cent) to 3,392.97.

Trading was subdued amid a lack US economic data, in sharp contrast to Friday when a strong April jobs report drove major gains in the leading indices.

Stocks also got an upward boost from fresh comments by European Central Bank President Mario Draghi, who said the ECB could take additional steps if economic conditions warranted, Peter Cardillo of Rockwell Global Capital said The ECB cut its benchmark interest rate last week to boost growth in the recession-mired eurozone.

EUROPEAN STOCKS, BONDS

Major European markets were slightly weaker, with London closed for a holiday and investors digesting solid gains notched up during some record-setting rallies last week.

Frankfurt's DAX 30, one of the indices that set a record high on Friday, gave up 0.13 percent to 8,112.08 points, while in Paris the CAC 40 lost 0.15 percent to 3,907.04 points in thin trading.

In Madrid, the Ibex 35 was 0.48 percent lower at 8,503.8 points, with banking shares leading the way down. The euro dipped to $US1.3067 from $US1.3116 late on Friday in New York.

ASIA-PACIFIC STOCKS, BONDS

Asian markets rose after a strong US jobs report revived optimism over the US economic recovery and drove Wall Street to record highs. Hong Kong shares rose 0.99 per cent, or 225.13 points, to close at 22,915.09 while Shanghai advanced 1.16 per cent, or 25.67 points, to 2,231.17.

Sydney added 0.52 per cent, or 26.7 points, to 5,156.2. Tokyo and Bangkok were closed for holidays. Malaysian shares soared as much as 7.76 per cent to a record high of 1,826 points as investors welcomed the poll victory of the ruling Barisan Nasional coalition, which retained power by a comfortable margin in Sunday's general election. Profit-taking pared the early gains, with the market up 3.38 per cent in afternoon trade on Monday.

The NZX 50 rose 51.91 points, or 1.1 per cent, to 4596.23.

The Australian market looks set to open higher following a mixed performance on Wall Street where the S&P500 reached an all-time high. At 0828 AEST on Tuesday, the June share price index futures contract was up 13 points at 5,166.

In economic news on Tuesday, the Reserve Bank of Australia holds its monthly board meeting and makes its interest decision. Meanwhile, the Australian Bureau of Statistics (ABS) releases international trade in goods and services for March data, House price indexes for the March quarter and overseas arrivals and departures figures for March.

The Australian Industry Group/Housing Industry Association performance of construction index (PCI) for month just ended is also due out.

In equities news, Coca-Cola Amatil holds its annual general meeting, Orica chief executive Ian Smith is scheduled to address an American Chamber of Commerce in Australia lunch while Virgin Australia launches a new regional airline in WA. In Australia, the market on Monday closed higher as the resources sector staged a recovery due to a jump in commodity prices.

The benchmark S&P/ASX200 index was UP 26.7 points at 5,156.2 points, while the broader All Ordinaries index was up 28.4 points to 5,133.8 points.

Overnight, the broad-based S&P 500 edged to a new all-time closing high, rising 3.08 (0.19 per cent) to 1,617.50. The Dow Jones Industrial Average slipped 5.07 (0.03 per cent) to 14,968.89 and the tech-rich Nasdaq Composite Index rose 14.34 (0.42 per cent) to 3,392.97.

COMMODITIES

Oil prices climbed after Israeli air strikes in Syria raised fresh concerns about rising tensions in the oil-rich Middle East. The main US futures contract, West Texas Intermediate (WTI) crude for delivery in June, closed at US$96.16 a barrel on the New York Mercantile Exchange, up 55 cents from Friday's closing level.

The European benchmark, Brent North Sea crude for June delivery, soared US$2.61 from Friday to settle at $105.46 on the Intercontinental Exchange in London.

Gold futures rose in light trading, as investors bet on robust demand for the metal following last month's slump in prices. The most actively traded contract, for June delivery, on Monday rose $US3.80, or 0.3 per cent, to settle at $US1,468 a troy ounce on the Comex division of the New York Mercantile Exchange.

Gold prices are up about eight per cent from the 26-month lows hit April 15, but remain well below where gold was trading before the record two-day rout that slashed prices by about $US200 an ounce.

Gold coin sales by the US Mint reached 209,500 troy ounces in April, the highest monthly sales since December 2009. The Mint has sold 10,000 troy ounces of gold so far in May.

The London Metals Exchange was closed Monday for a public holiday. Latest prices are for Friday. Copper led the London Metal Exchange (LME) to a stellar close, after an interest rate from the European Central Bank (ECB) and upbeat US employment data spurred a massive short covering rally in the recently heavily sold base metals.

At the close of open-outcry trading, LME three-month copper was up some 6.2 per cent on the day at $US7,270 a metric ton, having been dragged out of a bear market by a strong surge of short-covering aided by a stronger euro, heightening the appeal of the US dollar-denominated metals to euro holders.

Trading volumes also increased having been thinner early in the week due to a public holiday in top metals consumer China, which accounts for 40 per cent of global copper demand.

The ECB's rate cut on Thursday aimed at stimulating the flailing euro zone economy gave the economically-skewed industrial metals a boost.

Data showing London Metal Exchange copper stocks had declined sharply on Friday indicated a tightening market and further stoked investor demand, analysts said. A five-year low for US jobless claims fuelled the positive sentiment, noted UBS analysts. Gains were extended when the US monthly unemployment rate came in lower than expected. Compiled from MORRISON SECURITIES PTY. LTD.