Asian shares on three-month highs after surprise U.S. jobs recovery

Asian stocks rose on Monday after an unexpected increase in U.S. employment lifted hopes of a faster global recovery from the COVID-19 pandemic.

The Asian-Pacific’s MSCI outside of Japan gained 0.23%, continuing to see highs for eight consecutive days. The index soared by 34% after suffering from 4-year lows in March since the early days of the pandemic.

U.S. nonfarm payrolls surged by 2.509 million jobs in May, compared to a consensus estimate of a drop of 8 million jobs. The estimates were based on a record 20.687 million unemployment claims on April.

The U.S. Labor Department also reported an unexpected decline in unemployment rate from 14.7% in April to 13.3% in May, its lowest rate since the Second World War.

The figures boosted optimism of a quicker recovery of the global economy as governments ease lockdown measures.