TOKYO: Asia shares extended their rally on Tuesday as factory activity surveys from China and the United States boosted investor confidence, triggering the largest one-day sell-off in the US Treasury market in nearly three months.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.3 per cent to a seven-month high after rallying more than one per cent in the previous session.
Australian shares gained 0.8 per cent while Japan's Nikkei advanced 0.4 per cent, extending its gains for a third session.
Wall Street shares jumped on Monday, with the S&P 500 and Dow Jones Industrial Average both rising more than one per cent, with the Dow lifted by sharp gains in Caterpillar Inc and Boeing Co.
Investors cheered US data overnight showing improvements in manufacturing activity last month and construction spending for February, which overshadowed an unexpected drop in retail sales.
The upbeat readings added to earlier data showing China's manufacturing sector surprisingly returned to growth for the first time in four months in March in a sign government stimulus steps were starting to be felt.
The rare bright news for the global economy comes in the wake of persistent worries over cooling demand across the world, with the Sino-US tariff dispute, slowing trade and corporate profits prompting investors to dump risk assets over the past several months.
"The market is reacting to the improvement of the sentiment in China. Many investors are buying in anticipation of a rise in shares," said Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities. ..
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.3 per cent to a seven-month high after rallying more than one per cent in the previous session.
Australian shares gained 0.8 per cent while Japan's Nikkei advanced 0.4 per cent, extending its gains for a third session.
Wall Street shares jumped on Monday, with the S&P 500 and Dow Jones Industrial Average both rising more than one per cent, with the Dow lifted by sharp gains in Caterpillar Inc and Boeing Co.
Investors cheered US data overnight showing improvements in manufacturing activity last month and construction spending for February, which overshadowed an unexpected drop in retail sales.
The upbeat readings added to earlier data showing China's manufacturing sector surprisingly returned to growth for the first time in four months in March in a sign government stimulus steps were starting to be felt.
The rare bright news for the global economy comes in the wake of persistent worries over cooling demand across the world, with the Sino-US tariff dispute, slowing trade and corporate profits prompting investors to dump risk assets over the past several months.
"The market is reacting to the improvement of the sentiment in China. Many investors are buying in anticipation of a rise in shares," said Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities. ..
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