* Stock markets bounce on positive U.S., Japan data
* Concerns over U.S., Europe economies still in focus
* Coming up: US NY Fed manufacturing/Aug; 1230 GMT
By Francis Kan
SINGAPORE, Aug 15 (Reuters) - Brent crude futures rose on Monday, as investors bought into riskier assets after positive economic data from the U.S. and Japan helped ease panic in financial markets.
Asian equities followed Wall Street higher and safe-haven assets like gold and the Swiss franc fell as market players cautiously returned to pick up bargains after last's week wild ride.
U.S. retail sales posted their biggest gains in three months in July, although this was partly overshadowed by a slump in consumer confidence, a report on Friday showed.
In Japan, the economy shrank much less than expected in the second quarter as companies made strides in restoring output after the devastating earthquake in March, the government said on Monday.
Brent crude
"At these levels, oil looks cheap and we could see some buying activity. A lot of the bad news has been priced in and there is an expectation that the weakness cannot be sustained," said Ben Westmore, a commodities analyst at National Australia Bank.
Both benchmarks recorded their third straight weekly loss in volatile trading last week, as a downgrade of U.S. credit worthiness by ratings agency Standard & Poor's and fears that France might suffer the same fate sparked off heavy selling.
While weak data out of the U.S. or Europe this week could send prices spiralling again, the bar for disappointment has been set much higher after last week's turmoil, Westmore said.
In the longer-term, economists worry that as a U.S. economic rebound stalls and threatens to spiral into recession, oil demand in the world's top consumer may be slipping into an irreversible decline.
Brent oil
MENA UNREST
Renewed fears of further supply disruptions in the oil-producing region of North Africa and the Middle-East also supported prices.
Libyan rebels raised their flag over a strategic town near Tripoli on Sunday after their most dramatic advance in months cut off Muammar Gaddafi's capital from its main link to the outside world.
In Syria, tanks and navy ships shelled the main Mediterranean port city of Latakia on Sunday, as the U.S. called on nations to stop buying oil from the country.
"The demand side is in focus now, but there are also concerns over turmoil in the Middle East and North Africa. With the rebel troops advancing, the situation in Libya doesn't look like its going to be resolved any time soon, and that will help oil," said Westmore. (Editing by Manash Goswami)