Asian stocks are near their 6-week high

Asian stocks increased for a third straight session on Monday as risk appetite bolstered recent data showing that the global economic recovery from the coronavirus pandemic is progressing well. At the same time, the US dollar fell to near its lowest level in two months.

The MSCI Asia Pacific Index saw an increase. It rose 0.2% to 699.63, the highest level since March 18.

The index has been in solid activity recently as it posted its second consecutive weekly gain on Friday and was on its way to another month of gains. Since April 2020, the index has delivered positive returns in all but three months.

South Korea KOSPI Index increased by 0.3%, while New Zealand’s stocks rose by 0.6%.

Japan and Australian stocks dropped

Japan’s Nikkei Index is down by 0.3%. The Australian stock index decreased as well.

Risk appetite was fueled by indicators for manufacturing activity in early April last week. It indicated a solid start to the second quarter as data hit record highs in the US, indicating the end of the double-dip recession in Europe.

Investors embraced the robust data, ignoring earlier concerns about potentially higher US taxes on capital gains under the Biden administration.

US stocks closed more stable on Friday, with the S&P 500 reaching an all-time high for the day, ending its 1.1% rally. The Nasdaq Composite added 1.4%.

S&P 500 futures were slightly weaker in early Asia trading on Monday.

US GDP data for quarter 1 will be released later in the week, and activity is expected to return to pre-epidemic levels.

ANZ economists believe that the economy will close the output gap and rise above potential in the second half of this year. Based on their estimate, as 2021 moves into 2022, the room for growth for the United States will shrink.