BANGKOK -- World stock markets were mostly higher Tuesday as a pledge by Japan to buy eurozone bonds to help ease Europe's financial crisis alleviated concerns that debt-ridden Portugal might have to seek a bailout.
Oil prices hovered above $89 a barrel as traders eyed repairs on a shutdown Alaskan pipeline that has cut crude production from the biggest U.S. state. In currencies, the dollar was higher against the yen and the euro.
European shares were higher in early trading. Britain's FTSE 100 index was up 0.7 percent to 5,996.21. France's CAC-40 rose 0.6 percent to 3,824.53 and Germany's DAX was up 0.5 percent to 6,891.52.
Wall Street was set to gain with Dow futures up 20 points, or 0.2 percent, to 11,607.00. Broader S&P futures added 1.8, or 0.1 percent, to 1,267.30.
While Japan's benchmark Nikkei 225 stock average closed down 0.3 percent to 10,510.68, other major Asian indexes strengthened.
South Korea's Kospi rose 0.4 percent to 2,088.32 and Hong Kong's Hang Seng index gained 1 percent to 23,760.34. Stocks in Singapore, New Zealand, Taiwan and India were also higher.
Sentiment got a boost from a pledge by Japan to help Europe cope with its debt crisis eased fears that Portugal would be forced into a bailout, joining Greece and Ireland in getting massive financial help from its European partners and the International Monetary Fund.
Portugal is to sell bonds on Wednesday, and Portuguese officials have already sought the help of China, which has already used its foreign currency reserves to buy Greek and Spanish debt.
Japanese Finance Minister Yoshihiko Noda announced Tuesday that his country is "considering buying more than 20 percent of bonds" under a rescue fund to help Ireland. The European Financial Stability Facility, the eurozone's rescue fund, is set to issue debt worth several billions of euros later this month to finance the cost of an international bailout of Ireland.
Still, some analysts were skeptical that a reversal of the crisis was at hand.
"Everyone is concerned about what's happening in Europe. Since Friday, the markets have been weighed down by Portugal and Spain and the upcoming bond sales," said Tom Kaan, head of sales at Louis Capital Markets in Hong Kong.
The European debt crisis pressured U.S. stocks with the Dow Jones industrial average losing 37.31 points, or 0.3 percent, to 11,637.45 on Monday, falling for the third straight day.
In currencies, the dollar rose to 83.05 yen in Tokyo from 82.82 in New York late Monday. The euro dropped to $1.2942 from $1.2945.
Benchmark oil for February delivery fell 7 cents to $89.18 a barrel late afternoon Singapore time in electronic trading on the New York Mercantile Exchange.
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AP writers Elaine Kurtenbach in Shanghai and Shino Yuasa in Tokyo contributed.
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