World shares mixed before updates on US consumer spending, durable goods

Shares rose in Europe on Friday after a retreat in Asia ahead of updates on US consumer spending and durable goods orders.

Benchmarks climbed in London and Paris but fell in Hong Kong, Tokyo and Seoul. Oil prices surged more than USD1 a barrel.

Japan reported its core inflation rate, excluding volatile fresh foods, rose to 3.7per cent in November, the highest level since 1981, as surging costs for oil and other commodities added to upward price pressures in the world's third-largest economy.

While price increases are much more modest in Japan than in the US and most major European and emerging economies, they add to pressure on the Bank of Japan to adjust longstanding policies that have kept interest rates ultra-low to spur growth.

For Japan, deflation falling prices rather than inflation has been the key concern for most of the past few decades. Recession in coming months remains a greater concern, economists say.

Inflation edged up in November and will peak at around 4 per cen