* Brent oil up more than $1, but still off last week's highs
* Dollar steady vs Swiss franc, off last week's record low
* Tokyo, South Korean shares falter
SINGAPORE, Feb 28 (Reuters) - London crude prices rose by
more than $1 and Asian shares edged lower on Monday, as the
worsening situation in Libya stirred renewed concern about
disruptions to oil production.
The dollar found a steadier footing, having rebounded after
hitting a record low against the Swiss franc on Friday, but the
mood remained cautious given the tensions in Libya and fears of
contagion.
The dollar last stood at 0.9290 francs , steady from
late U.S. trade on Friday and above a record low of 0.9229 hit
against the safe haven Swiss currency on trading platform EBS on
Friday.
The euro slipped 0.3 percent against the dollar to $1.3716
, but the single currency was seen staying in favour ahead
of a European Central Bank meeting this week.
"With rising commodity prices, the ECB will likely continue
its tough talk on inflation, increasing the probability of early
ECB tightening," BNP Paribas analysts wrote in a note.
In Libya, armed rebels who have seized control of Zawiyah,
close to the capital Tripoli, were preparing for a
counter-attack as Libyan leader Muammar Gaddafi vowed to cling
on to his 41-year-old rule.
London crude prices rose by more than $1 to near $114 a
barrel , edging back in the direction of last Thursday's
high of $119.79, which was their loftiest intraday level since
August 2008.
Worries that the surge in oil prices could hurt global
economic growth had helped drag equities lower last week, with
MSCI's broad measure of Asia-Pacific equities outside Japan
having hit its lowest in nearly three months of 454.70
last Thursday.
The MSCI Asia-Pacific index dipped 0.3 percent on Monday to
460.37, while Japan's benchmark Nikkei share average fell 0.6
percent .
South Korean shares fell 0.5 percent , pressured by
falls in automakers and shipbuilders.
(Writing by Masayuki Kitano, reporting by Osamu Tsukimori in
Tokyo and Ian Chua in Sydney, editing by Andrew Marshall)
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