Asia shares gain, Chinese blue chips hit five-year high

Asian shares hit four-month highs on Monday as investors relied on liquidity and market stimulus to support global economic recovery despite the surge of new cases in the United States.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1%. Japan’s Nikkei was up 1.3%.

Chinese blue chips hiked 3%, adding to its 7% gain the previous week, to its highest level in five years.

Markets rose last week as economic data in June exceeded expectations. However, the rise in coronavirus cases in the United States remained a cause for concern.

Analysts said that market risks and economic stimulus from central banks underpinned sovereign bonds despite improving economic data. The U.S. 10-year yields rose 0.67%.

Elsewhere, major currencies have been range-bound with the dollar index at 97.189. The dollar firmed to 107.72 per yen, while the euro rose to $1.1271.

Spot gold traded at $1,772 per ounce.

Brent crude futures rose 19 cents to $42.99 per barrel, while U.S. crude fell 23 cents to $40.42.