SYDNEY- Asian stocks rose on Monday with Chinese shares near three-week highs as signs the world economic recovery was well on track bolstered risk appetite, while the US dollar slipped to a two-month low.
MSCI’s broadest index of Asia-Pacific shares outside Japan jumped 0.3 percent to surpass critical chart resistance of 700 points and reach its highest since March 18.
The index has had a strong run lately as it clocked its second consecutive weekly rise on Friday and was on track for another month of gains. Since April 2020, the index has offered positive returns in all but three months. Chinese shares were firm with the blue-chip CSI 300 index up 0.4 percent to its highest since Apr. 6.
South Korea’s KOSPI index rose 0.4 percent while New Zealand shares added 0.6 percent.
Japan’s Nikkei reversed early losses to be up 0.1 percent while Australia’s benchmark share index was off a touch with a public holiday in five of the country’s eight states and territories.
Risk appetite was whetted by early April manufacturing activity indicators out last week, which pointed to a robust start to the secondquarter with data hitting record highs in the United States and signaling an end to Europe’s double dip recession.
Investors embraced the strong data, shrugging off earlier concerns about potential higher US taxes on capital gains under the Biden administration.
On Friday, US shares ended firmer with the S&P 500 hitting a record intraday peak to end 1.1 percent higher. The Dow rose 0.7 percent while the Nasdaq Composite added 1.4 percent.
