SINGAPORE: Japanese shares hit a four-month high, leading gains in Asian stocks on growing investor optimism about the global economy, while the dollar held firm against the yen and euro. Signs of a recovery in the United States also lifted oil prices to a four-week high.
The MSCI index of Asia Pacific stocks outside Japan rose about half a percent in thin trade as markets in Australia and New Zealand remained shut for holidays.
The regional gauge has rallied nearly two-thirds this year, driven by waves of foreign capital trying to cash in on Asia's faster-than-expected economic recovery. By contrast, the Dow Jones Industrial Average has risen 20 per cent while the FTSEurofirst 300 index of leading European shares has gained almost a quarter.
Chinese stocks outperformed regional peers with the Shanghai Composite Index jumping 1.5 per cent, lifted by Premier Wen Jiabao's comments on Sunday that Beijing was committed to seeing through its stimulus package to help cement the economic recovery.
The Shanghai index has gained 5 per cent after falling to a seven-week low on Tuesday. "Investors expect many good stories to unfold in the near term," said Qian Qimin, deputy head of research at Shenyin & Wanguo Securities in Shanghai.
"The economy is recovering rapidly while the government is sticking to an easy monetary policy and corporate earnings appear to be delivering one positive surprise after another."
