By Chikako Mogi
TOKYO (Reuters) - Asian shares rose slightly on Monday on a fresh report detailing a potential framework for the European Central Bank's new bond buying scheme, to calm borrowing costs of stricken euro zone states, and hopes of a strong easing from the Federal Reserve.
Central bank sources told Reuters on Friday that the ECB is considering setting yield band targets under the bond-buying program to shield its strategy from speculators, but the decision would not be made before its September 6 policy meeting.
There is a dearth of major economic data in Asia on Monday, meaning the market's focus in the short-term will remain fixed on Europe, with longer-term focus on the annual U.S. Jackson Hole meeting of central bankers and economists later this week.
MSCI's broadest index of Asia-Pacific shares outside Japan <.MIAPJ0000PUS> as up 0.1 percent as Seoul shares <.KS11> trimmed earlier losses to trade up 0.1 percent. Samsung Electronics <005930.KS> remained pressured after a U.S. jury found it had copied critical features of Apple
Australian shares rose 0.4 percent <.AXJO>, supported by gains in the mining and banking sectors as hopes rose for more stimulus from the Fed, while Japan's Nikkei stock average <.N225> gained 0.8 percent. <.T>
A letter sent from Fed Chairman Ben Bernanke to a U.S. House panel reinforced market persistent views that the Fed would soon implement a third round of quantitative easing, known as QE3.
In the letter, obtained by Reuters on Friday, Bernanke wrote: "There is scope for further action by the Fed to ease financial conditions."
Traders will be seeking clues from Bernanke when he delivers a speech at a central bankers and economists meeting in Jackson Hole, Wyoming, ahead of the Fed's September 12-13 policy meeting. Bernanke has used the Jackson Hole event the previous two years to flag the Fed's intention on more easing.
Bernanke is due to speak on Friday and ECB President Mario Draghi will take the podium on Saturday.
"We expect Bernanke to clearly signal that Q3 is in the pipeline and our expectation remains that this will be delivered at the 12-13 September FOMC," Societe Generale said in a note.
"A dovish tone from Bernanke should bring some re-assurance to markets," it said, adding that the ECB will not help shore up sentiment much. "While the ECB has answered the question of how more risk sharing can take shape, they are not writing any blank checks. Conditionality is here to stay, and with it so too is sovereign risk until the conditionality is fulfilled," it said.
Analysts have said while the ECB's plans to buy government debt to reduce surging Spanish and Italian borrowing costs will help soothe market jitters, it does not resolve the fundamental issue of strengthening the fiscal foundation of the euro zone.
Greece remains a risk trigger for reversing the current moderately improved sentiment towards Europe.
German Chancellor Angela Merkel has said Germany would await a report by global lenders assessing the country's performance on its reform targets next month.
Merkel reiterated that she and French leader Francois Hollande wanted Greece to remain in the euro zone but that it must meet its reform targets, while Germany's finance minister reaffirmed on Saturday his opposition to giving Athens more time to carry out promised reforms.
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Asset returns in 2012: http://link.reuters.com/nyw85s
Gold above moving averages: http://r.reuters.com/xub32t
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With the euro zone's fiscal woes taking a deeper toll on the global economy, Chinese premier Wen Jiabao said on Saturday that China will implement new measures aimed at stabilizing export growth in the third quarter.
Growing hopes for more accommodative monetary stance around the world helped gold break a key resistance which had held for months, lifting spot gold to a 4-1/2 month high last week.
Data from the Commodity Futures Trading Commission on Friday showed that money managers, including hedge funds and other large speculators, boosted their bullish bets in U.S. gold futures and options to the largest amount since early May.
Gold posted its biggest weekly gain since January on Friday, and was trading up 0.3 percent at $1,674 an ounce on Monday.
Investors also kept paring positions betting on the euro's fall last week, while positions in favor of the U.S. dollar declined further to the lowest in nearly a year, the CFTC said.
The euro steadied at $1.2510, off Friday's low of $1.2481.
Oil rose, with U.S. crude up 1.1 percent to $97.20 a barrel and Brent up 0.9 percent to $114.58.
(Editing by Michael Perry)
