Oil prices bounced back from multi-week lows on Monday, hauling up European stock markets and commodity-linked currencies, on hints that producers were close to reaching an output deal.

Crude prices rose more than 1 percent, with US futures bouncing off Friday's one-month low to $43.65 and Brent climbing from a two-week trough to $46.27 after Venezuela said producers could announce a deal this month.

A firmer oil price bolstered energy company shares, helping European stocks climb after two straight weeks of losses. The pan-European 600 index, which had fallen to a six-week low on Friday, rose 0.7 percent, with the STOXX Europe 600 Oil & Gas index advancing 0.8 percent.

It also helped lift emerging market stocks around 1.5 percent, and commodity-linked currencies including the Canadian, Australian and New Zealand dollars , which were all around half a percent higher.

The US dollar was broadly weaker against a basket of other currencies, dipping 0.2 percent to 95.927, giving up some of Friday's gains which were the biggest in a single day since late June.

"It is not the first time this year we have had hopes of a deal and they have been dashed, but for now the oil rebound is supporting certain markets," said Frederik Ducrozet, a senior economist at Pictet.

Earlier, MSCI's broadest index of Asia-Pacific shares outside Japan gained 1.2 percent in a move that was largely attributed to bets that the US Federal Reserve would skip a chance to raise rates at a policy meeting this week.

Shanghai put on 0.5 percent, while Taiwan jumped 2.8 percent after a string of losses. Liquidity was lacking, with Tokyo closed for a holiday.

A surprisingly large rise in US consumer price inflation reported on Friday seemed to add to the case for a hike and pushed the dollar higher.

There was little discernible market reaction to bombings in New York City and New Jersey and a stabbing at a Minnesota shopping mall.

While US officials are investigating the attacks as potential "acts of terrorism," they stopped short of characterising the motivation for any of them until more.  -Reuters