Oil prices hit a record high above $55 on Monday, triggering falls in most Asian share markets already cautious ahead of a flood of U.S. earnings reports from corporate heavyweights this week. The dollar edged towards its lowest level against the euro in 7-Ѕ months, while gold held steady around $418 an ounce. U.S. light crude marched 29 cents higher to a record $55.22 a barrel, a gain of nearly 70 percent this year, on worries over thin stocks of heating fuel ahead of the high-demand northern hemisphere winter. Japan's Nikkei stock average <.N225> had slipped 0.2 percent by midday to 10,961.59 as worries over the impact of high energy costs on corporate profits and global economic growth offset bargain hunting in some exporters. "The market can't gain solid support unless oil prices cool down ... the recent rising pitch is way too fast and that's scaring investors," said Yasuo Ueki, a market analyst at consultancy Poko Financial Office. In Australia, shares in insurance group Axa Asia Pacific Holdings Ltd. fell 7 percent after a A$3.3 billion ($2.4 billion) deal by French insurer AXA to buy out its Asia-Pacific affiliate fell apart over price. Japanese Internet service provider Softbank Corp. <9984.T> fell nearly 2 percent ahead of a news conference at 0230 GMT to discuss its bid for a baseball team owned by debt-ridden retailer Daiei Inc <8263.T>. Daiei was down 3.7 percent. South Korea <.KS11> was the only bright spot among major regional share indexes as gains in banking stocks helped offset a 1.1 percent drop in chip giant Samsung Electronics Co. Ltd. <005930.KS>. Shares fell between 0.1 and 0.7 percent in Australia <.AXJO>, Hong Kong <.HSI>, Taiwan <.TWII> and Singapore <.STI> An MSCI index of Asia Pacific shares outside Japan <.MSCIAPJ> had slipped 0.1 percent by 0215 GMT.
DOLLAR EASES
The dollar fell across the board on Friday after weak U.S. consumer sentiment data, softer-than-expected industrial output and a bearish New York state manufacturing survey outweighed stronger-than-expected U.S. retail sales figures. The dollar was at 109.22 yen at 0220 GMT compared with 109.33 in late trade on Friday in New York, where it fell to a one-and-a-half month low of 108.80. The euro moved up to $1.2480 , from 1.2467 in late New York trade, leaving the currency in sight of $1.2507, Friday's peak and the highest level since March 1. Global shares saw volatile trade last week amid soaring oil prices, a mixed bag of earnings results and a sell-off in metals markets. The focus this week will be oil and a flood of U.S. earnings from blue-chip companies including International Business Machines Corp. , Texas Instruments Inc. , Microsoft Corp. , Caterpillar Inc. , and Amazon.com Inc. . Last week, 40 companies in the Standard & Poor's 500 index reported earnings. Of that group, 24 topped Wall Street estimates, eight were in line with estimates and eight missed. Investors will also focus on U.S consumer price data on Tuesday, Japanese trade figures on Thursday and third-quarter GDP figures from China scheduled for Friday. Fed Chief Alan Greenspan, easing fears about the surge in oil prices, predicted on Friday that soaring energy prices would not crimp economic growth as they had done in the 1970s. A surge in September retail sales and Greenspan's comments helped U.S. stocks close higher on Friday. The Dow Jones industrial average <.DJI> edged up 0.39 percent to 9,933.38 while the tech-heavy Nasdaq <.IXIC> rose 0.45 percent to 1,911.50. Japanese government bond (JGB) prices fell, with the yield on the benchmark 264th 10-year JGB <0#JPTSY=JBTC> up 2.5 basis points at 1.470 percent. Spot gold was at $418, versus $418.45 last quoted in New York on Friday.////www..com