Asian shares reach four-month high on recovering U.S, China economies

Asian shares recorded a four-month high on Friday backed by strong payrolls data and an upbeat recovery monitored in China’s services sector. However, an increase in coronavirus cases in the United States restricted further risk-taking.

MSCI’s broadest index of Asia-Pacific shares outside Japan advanced 0.5%, hitting their highest level since late February. Meanwhile, Chinese shares rallied higher as the Shanghai composite index tallied a record high last monitored in April 2019. Japan’s benchmark index Nikkei jumped 0.4%.

June had seen China’s services sector advancing at its fastest pace in over a decade, the Caixin/Markit services Purchasing Managers’ Index (PMI) showed. The expansion followed after consumer demand grew on lockdown easing.