* Asian stock markets : tmsnrt.rs\/2zpUAr4<\/p>\n
* Shares rise for a third straight day to near 6-week highs<\/p>\n
* Risk appetite bolstered by solid PMI data<\/p>\n
* Eyes on U.S. GDP data, Fed meeting this week<\/p>\n
SYDNEY, April 26 (Reuters) – Asian stocks climbed to six-week highs on Monday amid signs the world economic recovery was still well on track, though rising COVID-19 cases in the region weighed on sentiment, pushing oil prices lower.<\/p>\n
Futures for Eurostoxx 50 were flat as were those for Germany\u2019s DAX while London\u2019s FTSE futures were a shade weaker. E-mini futures for the S&P 500 were barely changed.<\/p>\n
The mood was relatively upbeat in Asia where MSCI\u2019s broadest index of Asia-Pacific shares outside Japan reached its highest since March 18, despite a late sell-off in Chinese shares.<\/p>\n
\u201cMarkets have priced in the pandemic as a sprint and not a marathon. That premise could come under stress in the weeks to come,\u201d said Jeffrey Halley, senior Asia-Pacific market analyst for OANDA.<\/p>\n
Fears surging COVID-19 cases in India will drive down fuel demand in the world\u2019s third-biggest oil importer put pressure on oil prices on Monday after they fell about 1% last week.<\/p>\n
China\u2019s blue-chip CSI 300 index fell 0.7% after hitting its highest level since April 6 earlier in the day. Australia\u2019s benchmark share index was off 0.2% with a public holiday in five of the country\u2019s eight states and territories.<\/p>\n
South Korea\u2019s KOSPI share index rose 0.7% while New Zealand shares added 0.6% and Japan\u2019s Nikkei reversed early losses to be up 0.4%.<\/p>\n
So far, risk assets such as equities have done well, with the MSCI ex-Japan index on track for a third straight year of positive returns. Since April 2020, the index has offered positive returns in all but three months.<\/p>\n
Recent data pointing to a solid global economic recovery had bolstered confidence in risk assets.<\/p>\n
Early April manufacturing activity indicators out last week pointed to a robust start to the second-quarter with data hitting record highs in the United States and signalling an end to Europe\u2019s double-dip recession.<\/p>\n
First-quarter U.S. gross domestic product data due later in the week is likely to show activity probably returned to pre-pandemic levels, analysts said.<\/p>\n
\u201cWe estimate that the economy will close the output gap and rise above potential in the second half of this year,\u201d ANZ economists wrote in a morning note, suggesting more upside for shares.<\/p>\n
Europe \u201ccannot match this, but as 2021 progresses into 2022, the growth differential to the U.S. will narrow.\u201d<\/p>\n
That said, some economists say the market could hit a soft patch in coming months reflecting concerns ranging from rising COVID-19 cases and worries that most of the benefits from massive fiscal stimulus have already been priced in.<\/p>\n
\u201cStated differently, this may be the last quarter where companies can avoid being penalized for not seeing revenue recover quickly and\/or not giving guidance,\u201d JPMorgan analysts wrote in a note.<\/p>\n
Strong recent data meant bonds were sold off, though 10-year U.S. Treasury yields were not far from a recent six-week low on expectations the U.S. Federal Reserve will stay accommodative at its meeting this week.<\/p>\n
In currencies, Turkey\u2019s lira edged lower adding to a recent slide and nearing an all-time low as a chill settled on relations with the United States and after the new central bank chief signalled that rate hikes would harm the economy.<\/p>\n
The U.S. dollar\u2019s index slipped to 90.679 against a basket of major currencies, a level not seen since March 3.<\/p>\n
The greenback was a shade weaker on the safe-haven Japanese yen at 107.80. The euro rose 0.1% to $1.2105. The risk sensitive Australian dollar stayed trapped in a narrow band to be last at $0.7766.<\/p>\n
In commodities, U.S. crude fell 73 cents to $61.41 per barrel and Brent eased 78 cents to $65.33.<\/p>\n
Gold climbed 0.1% to $1,779.19 an ounce.<\/p>\n