Asian equity markets edged cautiously higher on Monday as investors awaited data from February industry surveys to get a feel for what is happening in the global economy. The British sterling dropped on concerns the UK might yet vote to leave the European Union.
The slump in the currency took top billing in the news as worries that Britain may quit the European Union flared up after London Mayor Boris Johnson threw his weight behind the exit campaign.
MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.7 percent, having rebounded more than 4 percent last week and Japan's Nikkei recouped early losses to rise 0.7 percent, supported by a retreat in the yen even as an activity survey showed that a drop in new export orders dampened manufacturing.
China's major stock indexes firmed as investors welcomed news over the weekend that the head securities regulator was being replaced with the blue-chip CSI300 index and the Shanghai Composite Index both rising 0.9 percent.
Brent crude added 31 cents to $33.32 overnight and U.S. crude rose 26 cents to $29.90.
Sterling Reverses
The pound fell around 1 percent on the greenback, euro and yen. It slid as far as $1.4235 and 160.07 yen from around $1.4405 and 162.10 late on Friday, reversing any gain made after EU leaders agreed unanimously on measures aimed at avoiding a Brexit.
Other major currencies remained steadier with the dollar coming in a tad firmer at 112.89 yen and the euro at 125.45. Against the greenback, the common currency was also slightly weaker at $1.1116.