Asian markets mostly gain, dollar struggles after inflation data

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HONG KONG: Asian markets extended gains on Monday after a positive lead from Wall Street while the dollar struggled following more weak US inflation figures.
Equities around the world continue to rally on optimism about the global economy and the current corporate earnings season, with all three main New York indexes up following robust retail sales figures in the world鈥檚 largest economy.
Tokyo stocks hit another 21-year high, gaining 0.5 percent as traders were buoyed by upbeat corporate earnings, and largely shrugged off the Kobe Steel falsified data scandal and a relatively strong yen.
Polls showing Prime Minister Shinzo Abe on track for a landslide win in Japan鈥檚 general election Sunday boosted sentiment, as did Bank of Japan governor Haruhiko Kuroda鈥檚 signal that loose monetary policy would continue.
Hong Kong was trading up 0.7 percent in the afternoon, close to a new 10-year high, while there were also healthy gains in Sydney, Seoul and Singapore.
But Shanghai fell 0.4 percent ahead of the twice-a-decade National Congress starting Wednesday 鈥� President Xi Jinping is set to be handed a second term as president, but changes to several key leadership positions in China鈥檚 ruling party are expected.
The losses came despite data showing China鈥檚 factory price inflation rose in September, which indicated improving domestic demand and providing a positive signal for political efforts to reduce the economy鈥檚 dependence on exports and state investment.
Dealers also brushed off remarks from the country鈥檚 central bank chief that he expects strong growth in the second half despite fears of slowdown, saying the world鈥檚 number-two economy could grow seven percent after expanding 6.9 percent in the first six months.
鈥淭he momentum of economic growth has rebounded this year,鈥� People鈥檚 Bank of China governor Zhou Xiaochuan said at a G30 International Banking Seminar on Sunday, according to remarks published on the bank鈥檚 website Monday.
Europe鈥檚 stock markets advanced in opening deals, following the broad gains in Asia, with London up 0.3 percent, and Paris and Frankfurt each 0.2 percent higher.

Oil prices rose following armed exchanges between Iraqi and Kurdish forces near the oil city of Kirkuk early Monday.
Baghdad said its forces had taken control of a main military base as well as roads and infrastructure from Kurdish fighters near the disputed city, as tensions soar following a controversial independence referendum.
It follows Trump鈥檚 announcement that he was 鈥渄ecertifying鈥� the Iran nuclear deal Friday, which also provided support to crude.
The US president stopped short of nullifying the deal, but sent the agreement to Congress and warned 鈥渙ur participation can be canceled by me as president at any time.鈥�
Trump鈥檚 announcement was expected, blunting some of its impact on markets.
The dollar weakened against the yen and pound after figures showing US inflation remains stubbornly low.
However Federal Reserve chief Janet Yellen voiced optimism that consumer prices will soon increase, a position echoed by European Central Bank chief Mario Draghi.
鈥淢y best guess is that these soft (inflation) readings will not persist,鈥� Yellen told weekend IMF meetings, adding that 鈥渨ith the ongoing strengthening of labor markets, I expect inflation to move higher next year.鈥�

Tokyo 鈥� Nikkei 225: UP 0.5 percent at 21,255.56 (close)
Hong Kong 鈥� Hang Seng: UP 0.7 percent at 28,685.98
Shanghai 鈥� Composite: DOWN 0.4 percent at 3,378.47 (close)
London 鈥� FTSE 100: UP 0.3 percent at 7,554.35
Euro/dollar: DOWN at $1.1795 from $1.1822 at 2100 GMT Friday
Pound/dollar: DOWN at $1.3307 from $1.3291
Dollar/yen: DOWN at 111.67 yen from 111.86 yen
Oil 鈥� West Texas Intermediate: UP 73 cents at $52.18 per barrel
Oil 鈥� Brent North Sea: UP 92 cents at $58.09 per barrel
New York 鈥� DOW: UP 0.1 percent at 22,871.72 (close)