Shares rallied as news spread that Osama bin Laden had been killed.
Japan's markets opened on Monday as details of the US assault on theal-Qaida leader's compound became clearer and Tokyo's Nikkei average jumped above 10,000 for the first time since mid-March.
In the US, the dollar rebounded from a three-year low, with experts saying Bin Laden's killing would give a lift to American stocks and other financial securities.
Meanwhile benchmark crude for June delivery was down $1.23 at $112.70 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange.
The market for precious metals also dropped, as analysts warned that silver and gold were losing their "safe haven" appeal.
As Europe woke to the news, markets such as the FTSEurofirst 300 index spiked. Top European shares in the index were up 0.4% at 1,161.19 points at 7.23am.
At 7.14am, The Euro STOXX 50, an index of the eurozone's top blue chips, was up 0.5% at 3,026.23 points.
But Ric Spooner, market strategist at CMC markets, warned: "There's a danger this could be a bit of a false spike in the market. We are struggling to see the logic of it. I guess it's based on euphoria, a feeling that it takes away a reason for international tension. But it's difficult to see really the logic behind it being an ongoing rally."
Other analysts warned that the economic optimism surrounding Bin Laden's death could prove short-lived.
"Markets across the globe received a bit of a boost ... as news broke that US forces had killed Osama bin Laden," said Ben Potter, a market strategist at IG Index.
"However, like many euphoric bounces, they are often short-lived, especially given the possibility for reprisal attacks from extremists."
In the metal markets, silver prices tumbled more than 6%, marking their biggest loss since late 2008, and gold fell more than 2% off a record high.
"It's a psychological and kneejerk reaction and we have to see how long it lasts," said Koen De Leus, a strategist at KBC Securities, referring to market responses to Bin Laden's death.
Oil prices were already down after news that Nato air strikes over the weekend had killed one of the sons of the Libyan leader, Muammar Gaddafi, and after industry sources said Saudi Arabia had raised output in April. But analysts said they expected them to fall further.
"If Osama is taken out, you are going to see risk premium being wiped out from the market. It is going to bring down oil prices by $5 to $10 if people warrant that risk premium is important," said Jonathan Barratt, the managing director of Commodity Broking Services, based in Sydney.
Japan's markets opened on Monday as details of the US assault on theal-Qaida leader's compound became clearer and Tokyo's Nikkei average jumped above 10,000 for the first time since mid-March.
In the US, the dollar rebounded from a three-year low, with experts saying Bin Laden's killing would give a lift to American stocks and other financial securities.
Meanwhile benchmark crude for June delivery was down $1.23 at $112.70 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange.
The market for precious metals also dropped, as analysts warned that silver and gold were losing their "safe haven" appeal.
As Europe woke to the news, markets such as the FTSEurofirst 300 index spiked. Top European shares in the index were up 0.4% at 1,161.19 points at 7.23am.
At 7.14am, The Euro STOXX 50, an index of the eurozone's top blue chips, was up 0.5% at 3,026.23 points.
But Ric Spooner, market strategist at CMC markets, warned: "There's a danger this could be a bit of a false spike in the market. We are struggling to see the logic of it. I guess it's based on euphoria, a feeling that it takes away a reason for international tension. But it's difficult to see really the logic behind it being an ongoing rally."
Other analysts warned that the economic optimism surrounding Bin Laden's death could prove short-lived.
"Markets across the globe received a bit of a boost ... as news broke that US forces had killed Osama bin Laden," said Ben Potter, a market strategist at IG Index.
"However, like many euphoric bounces, they are often short-lived, especially given the possibility for reprisal attacks from extremists."
"It's a psychological and kneejerk reaction and we have to see how long it lasts," said Koen De Leus, a strategist at KBC Securities, referring to market responses to Bin Laden's death.
Oil prices were already down after news that Nato air strikes over the weekend had killed one of the sons of the Libyan leader, Muammar Gaddafi, and after industry sources said Saudi Arabia had raised output in April. But analysts said they expected them to fall further.
"If Osama is taken out, you are going to see risk premium being wiped out from the market. It is going to bring down oil prices by $5 to $10 if people warrant that risk premium is important," said Jonathan Barratt, the managing director of Commodity Broking Services, based in Sydney.
