Asian stocks edged up on Monday, holding near a six-month peak struck last week and withstanding an early bout of profit-taking as investors eyed a slew of corporate earnings reports around the world this week. The higher-yielding Australian dollar fell from a six-month high and commodity prices slipped after the initial drop in stocks, with assets that have gained the most on bets for a gradual global recovery coming under pressure. The euro slipped to a one-month low against the dollar on uncertainty over what the European Central Bank's next policy easing steps will be. Over the weekend, ECB President Jean-Claude Trichet said that the next move would be a quarter-point trim in rates, but other officials have sent mixed signals on what unconventional measures could be adopted. The ECB has lagged moves by the Federal Reserve, Bank of England and Bank of Japan in making asset purchases on top of cutting interest rates to near zero to revive their recession-hit economies. "The euro looks set to fall further, following the same path as the dollar, sterling and the yen did when they faced month-long selling after their central banks adopted unconventional measures," said Kengo Suzuki, a currency strategist at Shinko Securities in Tokyo. The MSCI index of Asia-Pacific shares outside Japan .MIAPJ0000PUS inched up 0.2 percent in early trade, getting a boost from gains in Hong Kong .HSI and Taiwan . BOC Hong Kong (2388.HK), the Bank of China's local subsidiary, jumped more than 5 percent after China said over the weekend it would allow Hong Kong banks on the mainland to issue yuan-denominated bonds, a move seen helping spur loan growth. U.S. shares climbed on Friday and the Dow Industrials average .DJI scored its strongest six-week run since 1938. But S&P futures were down 0.7 percent in Asia and were pointing to a weaker start at the opening bell. U.S. banks will continue to be in focus, with results from Bank of America (BAC.N), Wells Fargo (WFC.N) and Bank of New York Mellon (BK.N) among the major ones this week. President Barack Obama said on Sunday that the U.S. economy remained under strain and his top economic adviser tempered hopes for a speedy recovery that have driven the stock market to successive gains. Japan's Nikkei average .N225 dipped 0.4 percent, dragged down in part by Toshiba's (6502.T) 5.4 percent slide on reports the electronics maker will raise $5 billion in capital -- its first share issue in 28 years -- to bolster its financial position. JGBS RETREAT, BUT NZ SWAP RATES SLIP Government bonds in Japan retreated following a decline in U.S. Treasuries on Friday and as the rally in stocks was showing signs of holding up, even as some investors wondered if equities were due for a near-term reversal after the six-week run higher. Japan's Ministry of Finance was set to meet with big investors after talks with primary bond dealers on Friday as it eyes how to smooth out the expected surge in bond issuance to pay for the country's latest stimulus package totaling ($156 billion).

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