Chinese shares’ strong performance drove Asian stock markets to a two-year high on Monday. This could be attributed to investors’ upbeat sentiment over a steady recovery in China. However, U.S. stimulus talks kept the dollar firm, while a central bank policy restricted the yuan.
MSCI’s broadest index of Asia-Pacific shares outside Japan reached a 2-1/2-year peak after advancing 0.8%. The index was supported by Chinese blue chips’ 2% gain and Hang Seng index’s 1.5% jump. Japan’s benchmark index Nikkei had seen a 0.3% drop as corporate earnings dragged investors’ sentiment.
As China returned from its eight-day public holiday, a strong rebound in the tourism sector and easing coronavirus cases greatly contributed to investors’ sentiment. Meanwhile, coronavirus-driven programs in the United States are in disarray as the Trump administration demand the passing of a relief bill.