The dollar staged a broad-based rally Monday and oil prices slid, boosting shares in some Asian power and exporter companies, but many investors struggled for direction on the first trading day of 2005.
Oil prices dropped 82 cents to $42.63 a barrel on expectations that more mild U.S. weather would limit heating oil demand in the world's largest energy-consuming country.
The new year breathed new life into the U.S. currency, with the dollar gaining about 1 percent against the euro and Swiss franc and about half a percent against the yen in thin trade. "It seems to be position-squaring across the board in somewhat thin markets. There is no major news or intervention or anything like that," said David Simmonds, markets strategist with the Royal Bank of Scotland.
The euro was quoted at $1.3430, down from levels around $1.3550 at the New York close Friday but up from a 10-day low of $1.3392 struck in morning trade.
The yen was steady initially, but soon fell to 103.25 per dollar from 102.50 in late New York as the dollar extended its rally to include sterling the Swiss franc and Asian currencies.
The dollar's rally helped push gold down nearly $5 an ounce to around $434, but trade was thin due to a holiday in Japan.
MSCI's broadest index of Asia Pacific shares outside Japan had fallen 0.5 percent by 0615 GMT after earlier edging up to a seven-year high, helped by the drop in oil prices.
Markets in Japan, Australia, New Zealand and Thailand were closed for holidays. London markets are also closed, but other European markets will open.