SYDNEY (Reuters) - Asian share markets were mixed on Monday as relief US-led strikes on Syria looked unlikely to escalate was tempered by concerns at Russia’s potential reaction to new sanctions from Washington.
With the situation in the Middle East still fluid, moves were modest and in both directions. EMini futures for the S&P 500 ESc1 nudged up 0.38 percent, while Japan's Nikkei added 0.2 percent.
Yet MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS slipped 0.4 percent as Chinese blue chips took an early 0.7 percent dip.
“Stocks were concerned about a prolonged and expanded US campaign toward Assad and that doesn’t look probable.”
Safe-haven assets eased in response, with yields on US 10-year Treasury debt US10YT=RR up two basis points at 2.84 percent.
The dollar was a fraction firmer on the yen at 107.40 , up on last week's low around 106.62.
Dealers were keeping a wary eye on Japanese politics after a survey showed support for Japanese Prime Minister Shinzo Abe had fallen to 26.7 percent, the lowest since he took office in late 2012.
Abe’s sliding ratings are raising doubts over whether he can win a third three-year term as ruling Liberal Democratic Party (LDP) leader in a September vote, or whether he might even resign before the party election.
The euro was steady at $1.2330 , while the dollar index eased a touch to 89.772 .DXY.
EARNINGS, CHINA GDP ON MENU
In commodity markets, gold gained 0.1 percent to $1,346.61 an ounce XAU=, but remained well short of last week’s peak at $1,365.23.
Looking ahead, the US earnings season kicks into high gear this week with Thomson Reuters data predicting profits at S&P 500 companies increased by 18.6 percent in the first quarter from a year ago, their biggest rise in seven years.
Yet with expectations so high, bank shares ran into profit-taking on Friday after a batch of mixed results.
In Asia, China reports its gross domestic product for the first quarter on Tuesday with market forecasts clustered around growth of 6.7 percent to 6.8 percent.
The United States reports retail sales later on Monday and there are around 15 Federal Reserve speakers in the diary for the week.
Also this week, the IMF will hold its spring meetings of central bankers and finance ministers in Washington.