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<\/p>\nAsian stocks climbed to six-week highs on Monday amid signs the world economic recovery was still well on track, though rising COVID-19 cases in the region weighed on sentiment, pushing oil prices lower.<\/p>\n
Futures for Eurostoxx 50 were flat as were those for Germany’s DAX while London’s FTSE futures were a shade weaker. E-mini futures for the S&P 500 were barely changed.<\/p>\n
The mood was relatively upbeat in Asia where MSCI’s broadest index of Asia-Pacific shares outside Japan\u00a0(.MIAPJ0000PUS)\u00a0reached its highest since March 18, despite a late sell-off in Chinese shares.<\/p>\n
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“Markets have priced in the pandemic as a sprint and not a marathon. That premise could come under stress in the weeks to come,” said Jeffrey Halley, senior Asia-Pacific market analyst for OANDA.<\/p>\n
Fears surging COVID-19 cases in India will drive down fuel demand in the world’s third-biggest oil importer put pressure on oil prices on Monday after they fell about 1% last week.<\/p>\n
China’s blue-chip CSI 300 index\u00a0(.CSI300)\u00a0fell 0.7% after hitting its highest level since April 6 earlier in the day. Australia’s benchmark share index\u00a0(.AXJO)\u00a0was off 0.2% with a public holiday in five of the country’s eight states and territories.<\/p>\n
South Korea’s KOSPI share index\u00a0(.KS11)\u00a0rose 0.7% while New Zealand shares added 0.6% and Japan’s Nikkei\u00a0(.N225)\u00a0reversed early losses to be up 0.4%.<\/p>\n
So far, risk assets such as equities have done well, with the MSCI ex-Japan index on track for a third straight year of positive returns. Since April 2020, the index has offered positive returns in all but three months.<\/p>\n
Recent data pointing to a solid global economic recovery had bolstered confidence in risk assets.<\/p>\n
Early April manufacturing activity indicators out last week pointed to a robust start to the second-quarter with data hitting record highs in the United States and signalling an end to Europe’s double-dip recession.<\/p>\n
First-quarter U.S. gross domestic product data due later in the week is likely to show activity probably returned to pre-pandemic levels, analysts said.<\/p>\n
“We estimate that the economy will close the output gap and rise above potential in the second half of this year,” ANZ economists wrote in a morning note, suggesting more upside for shares.<\/p>\n
Europe “cannot match this, but as 2021 progresses into 2022, the growth differential to the U.S. will narrow.”<\/p>\n
That said, some economists say the market could hit a soft patch in coming months reflecting concerns ranging from rising COVID-19 cases and worries that most of the benefits from massive fiscal stimulus have already been priced in.<\/p>\n
“Stated differently, this may be the last quarter where companies can avoid being penalized for not seeing revenue recover quickly and\/or not giving guidance,” JPMorgan analysts wrote in a note.<\/p>\n
Strong recent data meant bonds were sold off, though 10-year U.S. Treasury yields were not far from a recent six-week low on expectations the U.S. Federal Reserve will stay accommodative at its meeting this week.<\/p>\n
In currencies, Turkey’s lira edged lower adding to a recent slide and nearing an all-time low as a chill settled on relations with the United States and after the new central bank chief signalled that rate hikes would harm the economy.<\/p>\n
The U.S. dollar’s index slipped to 90.679 against a basket of major currencies, a level not seen since March 3.<\/p>\n
The greenback was a shade weaker on the safe-haven Japanese yen at 107.80. The euro rose 0.1% to $1.2105. The risk sensitive Australian dollar stayed trapped in a narrow band to be last at $0.7766.<\/p>\n
In commodities, U.S. crude fell 73 cents to $61.41 per barrel and Brent eased 78 cents to $65.33.<\/p>\n
Gold climbed 0.1% to $1,779.19 an ounce.<\/p>\n
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Asian stocks climbed to six-week highs on Monday amid signs the world economic recovery was<\/p>\n","protected":false},"author":1,"featured_media":9601,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[2],"tags":[],"class_list":["post-9599","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"yoast_head":"\n