Asian shares hit 29-month peak, China services grow
Asian shares recorded a 29-month peak on Monday. This followed after investors’ sentiment grew on optimism that global monetary and fiscal policies would stay effective. Meanwhile, China’s services sector advanced, indicating that the country maintained its recovery.
MSCI’s broadest index of Asia-Pacific shares outside Japan recorded a 0.5% gain, reaching its highest level since March 2018. The jump followed after the index advanced 2.8% last week.
Chinese blue chips advanced 0.7%, hitting levels last seen in 2015. While China’s manufacturing activity reached 51.0 in July, services reaching a 55.2 record came as an encouraging sign of recovery in consumer demand.
E-mini futures for the S&P 500 jumped 0.5%, while EUROSTOXX 50 futures tallied a 1% gain. Japan’s benchmark index Nikkei soared 1.9% boosted by reports that Warren Buffet’s Berkshire Hathaway had purchased more than 5% stakes in each of the five leading Japanese trading firms.