North American markets look set to open higher Monday, getting a lift from string of merger deals announced over the weekend.

China’s CNPC International has struck a deal with PetroKazakhstan to offer US$4.18 billion, or US$55 a share, to acquire the Canadian company. The major acquisition is intended to boost China’s energy supplies

Also, German tourism and shipping company TUI will buy CP Ships in a US$2 billion deal that creates the world’s fifth-largest container-shipping company.

In today’s economic news, retail sales bounced back 1.1% in June to $30.8 billion after falling 1.2% in May, Statistics Canada said.

While half of the eight retail sectors enjoyed sizable sales gains, about two-thirds of June’s increase came from stronger auto sales, the government agency said.

No major U.S. economic data are scheduled for release Monday.

Oil prices held above US$65 US a barrel as saboteurs forced Iraq’s southern pipeline exports to slow to a trickle. Mid-afternoon in Singapore, light, sweet crude for September delivery fell 8¢ to US$65.27 a barrel on the New York Mercantile Exchange in Asian trading hours.

Overnight in Asia, the Japanese Nikkei 225 index jumped 160.78 points, or 1.3%, to 12,452.51 points on the Tokyo Stock Exchange on It was the Nikkei’s highest since July 5, 2001.

In Hong Kong, shares ended higher, amid gains in oil giant CNOOC Ltd. The blue-chip Hang Seng Index rose 180.02 points, or 1.2%, to 15,218.63.

On Friday, Toronto stocks rallied, as a spike in the price of oil, caused by supply concerns and global uncertainty, spurred the energy sector. The S&P/TSX composite index finished up 110.81 points, or 1.07%, at 10,502.11.

Eight of 10 TSX main sub-groups ended up, with the energy sector posting a 2.31% gain.

The junior S&P/TSX Venture composite index finished up 18.41 points, or 0.97%, to 1,909.73.

In New York, investor reaction about a verdict against pharmaceutical giant Merck & Co. sunk gains earlier in the day’s trading.

The Dow Jones industrial average rose 4.30, or 0.04%, to close at 10,559.23. The S&P 500 i gained 0.69, or 0.1%, to 1,219.71, while the Nasdaq composite index slipped 0.52, or 0.02%, to 2,135.56.

For the week, the Dow slipped 0.4%, the S&P 0.9%, and the Nasdaq 1%.

A Texas court found Merck & Co. liable for the death of a man who took Vioxx, and awarded his estate more than US$250 million in damages. More than 4,000 Vioxx lawsuit cases have been filed against the company. Merck shares dropped $2.35, or 7.7%, to US$28.06