Asian shares and the euro steadied on Monday after the IMF secured new funding to prevent the contagion of the euro zone's debt crisis, with investors turning to Chinese data to gauge the market's resilience to risk.
MSCI's broadest index of Asia-Pacific shares outside Japan <.MIAPJ0000PUS> was nearly flat while Japan's Nikkei average <.N225> opened up 0.4 percent.
The contagion risk of Europe's debt problems was reduced slightly when the International Monetary Fund secured $430 billion to boost its firepower in case Europe's debt woes worsen and spill over to peripheral economies.
Global finance chiefs wasted no time in weekend talks to press Europe to quickly implement the economic reforms needed to stamp out its debt crisis now that newly increased financial buffers have bought some time.
They continued to face resistance from the European Central Bank to do more to further reduce the risk of a new flare-up on the crisis.
Markets will return their focus to economic data and policy events this week, starting with a flash reading of China's manufacturing activity for April from HSBC due at 0230 GMT and the euro zone's manufacturing activity report later in the session.
We expect China's PMI number on Monday to confirm our view that activity remains well supported, Barclays Capital analysts said in a research note. We also expect Euro area PMI to come marginally above consensus on Monday, helping markets keep the positive tone inherited from Friday.
The euro retreated from two-week highs of $1.3225 against the dollar hit on Friday, standing down 0.1 percent at $1.3208. The euro rose 1.1 percent last week for its best weekly performance since the week of February 26.
Strong corporate earnings boosted U.S. stocks while a surprisingly strong reading on Germany's Ifo business sentiment survey and reduced concerns about Spain's debt worries boosted risk sentiment on Friday.
About 81 percent of the S&P 500 companies that have reported so far have beat expectations, according to Thomson Reuters data.
Early market reaction was muted to the result of the first round of the French presidential election on Sunday, which showed Socialist presidential candidate Francois Hollande marginally ahead of incumbent President Nicolas Sarkozy.
Polls conducted after the vote showed Hollande will beat incumbent Sarkozy in the May 6 second-round ballot with about 53 to 56 percent of the vote.
Some analysts have cautioned Sarkozy's defeat on May 6 would weaken the current close cooperation between France and Germany in dealing with the euro zone debt crisis, while others said Hollande, if he wins, was unlikely to threaten Europe's general course for fiscal austerity.
Sarkozy's leadership abilities were instrumental in the euro zone's fight against debt and investors are obviously worried that an absence of this key figure may be detrimental to further progress, said Oh On-su, an analyst at Hyundai Securities.
Brent crude rose 76 cents to settle at $118.76 a barrel on Friday, while U.S. crude was nearly unchanged at $103.87 a barrel early on Monday, after settling up $1.16 at $103.88.
Reflecting market nervousness over the ability of European policy makers to contain the euro zone debt crisis as Spanish sovereign debt yields soared, redemptions from EPFR Global-tracked Europe Equity Funds accelerated for the fourth week running in mid-April.
In contrast, flows into Japan Equity Funds amounted to a four-week high of $392.4 million, as investor sentiment was supported by the prospect of more stimuli from the Bank of Japan, EPFR Global said.
Asian credit markets were stable, with the spread on the iTraxx Asia ex-Japan investment-grade index barely changed from Friday.
(Additional reporting by Joonhee Yu in Seoul; Editing by Nick Macfie)