Investors returned from the weekend in relatively good spirits after an upbeat end to October that saw China-US tensions ease, a Federal Reserve interest rate cut, and healthy earnings from market darlings including Amazon.

Traders are also hoping for key US jobs data to be released later in the week, though the ongoing government shutdown -- with Democrats and Republicans no closer to a reopening deal -- could cause them to be suspended again.

While the government closure has not had any major impact on markets, analysts warned it could begin to affect Americans.

"The shutdown could soon feasibly become the longest on record, though markets remain largely unperturbed," wrote Chris Weston at Pepperstone.

"Public frustration is expected to build this week as (food) benefits for lower-income families are paused, and disruptions increase for domestic travel. New enrolments for Americans seeking access to Affordable Care Act plans may also become increasingly problematic."

After April's plunge sparked by US President Donald Trump's trade tariffs blitz, world markets have surged with Wall Street's three main indexes and several others hitting record highs.

Those gains have come on the back of expectations -- and the delivery -- of Fed rate cuts as well as a seemingly unending race to invest in artificial intelligence.

That has pushed valuations of some firms to eye-watering levels, with chip titan Nvidia becoming the first $5 trillion firm last week.

Wall Street's gains Friday were tracked in most of Asia at the start of the week.

Hong Kong, Shanghai, Singapore, Sydney, Wellington, Mumbai, Bangkok and Taipei all advanced, while Seoul piled 2.8 percent to a record as investors cheered a thawing of ties between South Korea and China.

London and Paris opened on a positive note but Frankfurt dipped.

Tokyo was closed for a holiday.

Investors were keeping tabs on any new developments after Trump and Chinese President Xi Jinping met last week and agreed a deal to ease China's rare earth curbs and lower US tariffs.

Still, US Treasury Secretary Scott Bessent warned Sunday that the White House could again hike levies on China if it blocked rare earth exports.

Oil prices edged up after the OPEC+ alliance said it would lift output again in December but would pause production in the first three months of 2026.

Gold prices hovered around $4,000 after China said it was scrapping a tax incentive on buying the commodity.

The precious metal has tumbled from its October 20 record above $4,381 as investors cashed out, following a more than 60 percent surge since the start of the year.

- Key figures at around 0820 GMT -

Hong Kong - Hang Seng Index: UP 1.0 percent at 26,158.36 (close)

Shanghai - Composite: UP 0.6 percent at 3,976.52 (close)

London - FTSE 100: UP 0.2 percent at 9,734.84

Tokyo - Nikkei 225: Closed for a holiday

Euro/dollar: UP at $1.1534 from $1.1527 on Friday

Pound/dollar: UP at $1.3140 from $1.3139

Dollar/yen: UP at 154.17 yen from 154.11 yen

Euro/pound: UP at 87.83 from 87.74 pence

West Texas Intermediate: UP 0.6 percent at $61.32 per barrel

Brent North Sea Crude: UP 0.5 percent at $65.11 per barrel

New York - Dow: UP 0.1 percent at 47,562.87 (close)

dan/rsc

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