HONG KONG  - Asian markets rose Monday following widespread falls last week, after Wall Street shrugged off fears over instability in Iraq and Ukraine.

Tokyo rebounded 2.38 percent, closing up 352.15 points at 15,130.52 and making up much of the 2.98 percent dip it suffered Friday after US President Barack Obama’s announcement that he had authorised air strikes in Iraq.

Hong Kong closed up 1.29 percent, or 314.61 points, at 24,646.02 while Shanghai gained 1.38 percent, or 30.22 points, to 2,224.65.

Other regional markets saw more modest gains. Sydney rose 0.40 percent, or 21.7 points, to 5,457.0 while Seoul was up 0.41 percent, or 8.27 points, closing at 2,039.37.

The dollar also rallied against the yen and euro after the unit plunged last week as investors snapped up the Japanese currency, seen as a safe haven in times of uncertainty and turmoil.

Last week ended on a sour note for most Asian markets as worried investors took fright from a ramping up of instability in Iraq, where the US has been launching air strikes against extremist militants besieging ethnic minorities in the country’s north.

But US markets shrugged off the escalation of violence, ending the week in the black with a rally Friday.

The Dow Jones Industrial Average rose 0.37 percent over the week, or 60.56 points to end at 16,553.93. The tech-rich Nasdaq Composite Index added 0.42 percent, or 18.26 points to 4,370.90.

- ‘Conflicts cooling’ -

Analysts said Asian market players were still keeping a close eye on the global geopolitical situation, but investors were beginning to feel both the Ukraine and Iraq conflicts were de-escalating.

“On an interim-term view, geopolitics remain at the forefront of investors’ decision-making,” wrote Evan Lucas at Melbourne-based IG Ltd in a note.

The conclusions from the weekend “are that conflicts are cooling“, he said.

But risks remain. Over the weekend Ukraine’s army shelled the main rebel bastion of Donetsk, as Russia called for a humanitarian ceasefire which the West warned could be a pretext by Moscow to send in troops.

In the week ahead, investors will be watching economic health indicators from China. The world’s second largest economy is due to release its latest industrial output, retail sales and fixed-asset investment figures on Wednesday.

US retail sales and industrial production for July will also be released later this week. In forex trade the dollar strengthened to 102.13 yen in Tokyo afternoon trade, against 102.06 yen in New York late Friday and 101.81 yen in Asia.

The euro was quoted at $1.3401 and 136.87 yen, slipping from $1.3416 and 136.93 yen in New York.

Oil prices were mixed. US benchmark West Texas Intermediate for September delivery rose 15 cents to $97.80 while Brent crude for September fell six cents to $104.96.

Gold slumped to 1,307.68 an ounce by 1050 GMT compared to its three-week high of $1,322.92 an ounce on Friday.

Jakarta rose 1.18 percent, or 59.48 points, to close at 5,113.24.

Palm oil producer Astra Agro Lestari rose 1.05 percent to 26,500 rupiah, while Hero Supermarket fell 1.85 percent to 2,650 rupiah.

Kuala Lumpur gained 0.51 percent, or 9.45 points, to close at 1,849.32.

Malaysia Airline System rose 8.33 percent to 0.26 ringgit and Tenaga Nasional added 0.67 percent to 12.06 ringgit.

Manila closed 1.11 percent higher, or 76.32 points, at 6,956.66.

Top-traded JG Summit Holdings Inc. gained 2.31 percent to 53.20 pesos while Philippine Long Distance Telephone Co. rose 2.67 percent to 3,080 pesos.

— Mumbai rose 0.75 percent, or 190.10 points, to end at 25,519.24.

Aurobindo Pharma gained 6.94 percent to 771.55 rupees, while Mahindra & Mahindra rose 6.45 percent to 1,308.40 rupees.

— Singapore rose 0.53 percent, or 17.56 points, to 3,306.45.

Real estate developer Capitaland gained 0.30 percent to Sg$3.36 while United Overseas Bank fell 0.26 percent to Sg$22.63.

— Wellington fell 0.11 percent, or 5.57 points to 5,049.63.

Air New Zealand was down 0.26 percent at NZ$1.935 while Spark was off 0.35 percent at NZ$2.81.

— Taipei rose 0.96 percent, or 86.95 points, to 9,172.91.

Hon Hai Precision Industry added 1.46 percent to Tw$104.0 while Cathay Financial Holding was 1.24 percent higher at Tw$48.9.