Global stocks hit
a record high on Friday and Asian markets rose to their best levels in
more than two years as upbeat data on U.S. manufacturing and employment
and buoyant European factory growth boosted investor optimism.
The
MSCI ACWI .MIWD00000PUS, an index of 46 stock markets in the world,
rose 0.2 percent to a record high. It was on track for a gain of 0.6
percent for the week and close to 11 percent for the year to date.
European shares were also expected to advance, with spread-betters looking at gains of 0.6-0.7 percent for Germany's DAX .GDAXI, France's CAC .FCHI and Britain's FTSE .FTSE.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS gained 0.6 percent, while Japan's Nikkei .N225 rose 1.6 percent, topping the psychologically important 20,000-point mark and taking the benchmark to its highest level since August 2015.
Wall Street's volatility index .VIX, which measures implied volatility of stocks and is often seen as investors' fear gauge, fell below 10, near a decade-low touched last month, in another sign of investors' confidence that markets will be stable at least for the time being.
The Institute for Supply Management said its barometer of U.S. factory activity edged up to 54.9 last month from 54.8 in April, while ADP reported private payrolls grew by 253,000 last month, beating analysts' median forecast of a 185,000 increase.
Those numbers offset weakness in auto sales and set markets up for solid government payroll data due at 1230 GMT.
Following the latest data, the Atlanta Federal Reserve upgraded its closely-watched GDP Now forecast for April-June growth to a 4.0 percent annualised pace from 3.8 percent.
Further signs of solid U.S. growth led traders to almost fully price in the chance that the Federal Reserve will raise interest rates at its June 13-14 policy meeting. They also supported the outlook for possibly another hike by the year-end, likely in September.
European shares were also expected to advance, with spread-betters looking at gains of 0.6-0.7 percent for Germany's DAX .GDAXI, France's CAC .FCHI and Britain's FTSE .FTSE.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS gained 0.6 percent, while Japan's Nikkei .N225 rose 1.6 percent, topping the psychologically important 20,000-point mark and taking the benchmark to its highest level since August 2015.
Wall Street's volatility index .VIX, which measures implied volatility of stocks and is often seen as investors' fear gauge, fell below 10, near a decade-low touched last month, in another sign of investors' confidence that markets will be stable at least for the time being.
The Institute for Supply Management said its barometer of U.S. factory activity edged up to 54.9 last month from 54.8 in April, while ADP reported private payrolls grew by 253,000 last month, beating analysts' median forecast of a 185,000 increase.
Those numbers offset weakness in auto sales and set markets up for solid government payroll data due at 1230 GMT.
Following the latest data, the Atlanta Federal Reserve upgraded its closely-watched GDP Now forecast for April-June growth to a 4.0 percent annualised pace from 3.8 percent.
Further signs of solid U.S. growth led traders to almost fully price in the chance that the Federal Reserve will raise interest rates at its June 13-14 policy meeting. They also supported the outlook for possibly another hike by the year-end, likely in September.
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