Asian shares notched a 29-month high on Monday as investors wagered monetary and fiscal policies globally would stay super stimulatory, while an upbeat reading on China’s service sector augured well for continued recovery there.
- MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose 0.5% to reach its highest since March 2018, extending a 2.8% gain last week.
- Chinese blue chips .CSI300 firmed 0.7% to reach levels not seen since mid-2015. Surveys showed Chinese manufacturing activity edged back a tick to 51.0 in July, but services jumping a full point to 55.2 in a hopeful sign of reviving consumer demand.
- E-Mini futures for the S&P 500 ESc1 climbed another 0.5%, while EUROSTOXX 50 futures STXEc1 added 1%.
- Early Monday, the dollar index was off at 92.341 =USD and just a whisker above the recent two-year low of 92.127.
- The euro stood at $1.1902 EUR=, having climbed 0.9% last week.
- In commodity markets, the weakness in the dollar helped underpin gold at $1,969.
- Oil prices steadied, having dipped on Friday after Hurricane Laura passed the heart of the U.S. oil industry without causing any widespread damage.
- Brent crude LCOc1 futures rose 26 cents to $46.07 a barrel.
- U.S. crude CLc1 gained 13 cents to $43.10.