Asian stocks held
two-years highs on Monday, starting the new month on a solid footing
after two quarters of gains while expectations of credit tightening by
the world's major central banks kept global bond markets under pressure.
MSCI's
broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was
flat, staying within a stone's throw of its two-year peak hit last week.
Signs of stabilising in China's economy and a recovery in the European economy helped to boost global share prices in the first half of this year.
A private sector survey on China's manufacturing CNPMIC=ECI showed a surprise recovery in activity, adding to the evidence of steadying growth in the world's second largest economy.
The Bank of Japan's tankan corporate survey showed Japanese business sentiment improved slightly more than expected.
On Wall Street, the S&P 500 .SPX scored its biggest gain for the first half of the year since 2013 while the Nasdaq Composite's .IXIC first-half gain was its best in eight years.
European shares had less luck after the European Central Bank and the Bank of England last week signalled their readiness to tighten their monetary policies, with pan-European Euro first 300 stock index .FTEU3 hitting 10-week lows on Friday.
Global bond yields have risen sharply following hawkish comments from European Central Bank President Mario Draghi last Tuesday, with German bond yields posting their biggest weekly jump since December 2015 last week.
That helped to lift U.S. bond yields from lows, with the 10-year U.S. Treasuries yield hitting a 1-1/2-month high of 2.320 percent on Monday.
The rise came even as data showed U.S. inflation cooled in May. The annual rise in core consumer prices excluding food and energy slowed to 1.4 percent, its lowest since December 2015.
Signs of stabilising in China's economy and a recovery in the European economy helped to boost global share prices in the first half of this year.
A private sector survey on China's manufacturing CNPMIC=ECI showed a surprise recovery in activity, adding to the evidence of steadying growth in the world's second largest economy.
The Bank of Japan's tankan corporate survey showed Japanese business sentiment improved slightly more than expected.
On Wall Street, the S&P 500 .SPX scored its biggest gain for the first half of the year since 2013 while the Nasdaq Composite's .IXIC first-half gain was its best in eight years.
European shares had less luck after the European Central Bank and the Bank of England last week signalled their readiness to tighten their monetary policies, with pan-European Euro first 300 stock index .FTEU3 hitting 10-week lows on Friday.
Global bond yields have risen sharply following hawkish comments from European Central Bank President Mario Draghi last Tuesday, with German bond yields posting their biggest weekly jump since December 2015 last week.
That helped to lift U.S. bond yields from lows, with the 10-year U.S. Treasuries yield hitting a 1-1/2-month high of 2.320 percent on Monday.
The rise came even as data showed U.S. inflation cooled in May. The annual rise in core consumer prices excluding food and energy slowed to 1.4 percent, its lowest since December 2015.
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