European stocks were expected to have a firmer bias after the Dow Jones average ended over two percent up on Friday, although the Nasdaq managed a rise of only 0.19 per cent. On the currency Front, the euro had only a tentative grip on the 84 cent level on Monday as most dealers dismissed its latest bounce as a mere blip in the dominant downtrend. The euro was hovering at 0.8399 after Friday's hop from 83 cents, but showed no inclination to test that day's highs around 0.8440, which was shaping up as tough chart resistance.

The dollar was a shade firmer against the yen at 108.71 yen compared with 108.64 late in New York on Friday, but again dealers reported sizeable Japanese sell orders above 109.00. In Hong Kong, the Hang Seng index shed 0.5 per cent as weak property stocks and a lacklustre showing by China mobile took their toll.

Taiwan stocks led the decliners in the region, plummeting more than three percent initially after the government abruptly scrapped a controversial nuclear power plant project on Friday. The benchmark Taiex closed down 2.52 percent at 5,659.08.

Premier Chang Chun-Hsiung's cabinet's decision to stop construction of Taiwan's fourth nuclear power plant ignited a bitter partisan feud in the legislature where the ruling Democratic Progressive Party (DPP) holds a minority.