American Marconi Wireless News - Stocks mostly rise with focus on US inflation

Oil prices gained close to two percent as the United States and Iran remained deadlocked over a deal to reopen the Strait of Hormuz to Gulf tanker and cargo traffic.

In Asia, equities were boosted by technology shares following a volatile run in recent weeks, with Japanese and Korean chipmakers leading the charge.

Tokyo climbed more than two percent thanks to advances for Tokyo Electron and Advantest, and Seoul, Hong Kong, Shanghai and Mumbai also closed higher.

European stock markets were more subdued, with Frankfurt edging up, Paris flat and London dipping around midday.

Sentiment was lifted after US data on Friday showed that 23,000 jobs were lost last month, confounding widespread expectations for growth and suggesting that economy was slowing.

But traders welcomed the prospect that the Federal Reserve would hold off on raising borrowing costs to contain stubbornly high inflation, at least for the time being.

"People who lose their jobs and those who see their wages grow more slowly will be tempted to spend less," said Ipek Ozkardeskaya, senior analyst at Swissquote.

That would "tame inflationary pressures and help the Federal Reserve keep rates unchanged for longer", she added.

Focus now turns to US consumer inflation data due Wednesday, followed by producer prices later in the week.

On currency markets, the dollar clawed back some of the losses seen Friday in reaction to the US jobs figures.

The greenback plunged against the yen earlier this month when authorities in the US and Japan embarked on a joint intervention to support the Japanese currency, saying its value had fallen too far.

Crude prices extended gains after Iran's Revolutionary Guards warned Sunday that they would not reopen the Strait of Hormuz until Washington complied with demands including compensation for war damage.

"The Iran conflict remains a key source of concern for markets, with a lasting resolution seeming a distant prospect at this point," said AJ Bell investment director Russ Mould.

Tehran insists on retaining control of the waterway through which about one-fifth of the world's oil and liquefied natural gas passes, and wants to charge tolls for passage, a demand US officials have rejected.

- Key figures around 1100 GMT -

London - FTSE 100: DOWN 0.3 percent at 10,865.54 points

Paris - CAC 40: FLAT at 8,714.71

Frankfurt - DAX: UP 0.3 percent at 26,402.34

Tokyo - Nikkei 225: UP 2.1 percent at 66,970.22 (close)

Hong Kong - Hang Seng Index: UP 1.1 percent at 25,937.49 (close)

Shanghai - Composite: UP 0.7 percent at 3,966.59 (close)

New York - DOW: UP 0.3 percent at 54,036.93 (close)

Euro/dollar: DOWN at $1.1556 from $1.1567 on Friday

Pound/dollar: UP at $1.3501 from $1.3499

Dollar/yen: UP at 158.78 yen from 157.50 yen

Euro/pound: DOWN at 85.62 pence from 85.68 pence

Brent North Sea Crude: UP 1.7 percent at $84.98 per barrel

West Texas Intermediate: UP 1.7 percent at $79.50 per barrel

H.E.Young--AMWN