Asian shares hit two-week high on Fed pause bets, China boost
dollar wobbled as weak U.S. labour data bolstered bets that the Federal Reserve was likely done with its interest rate hikes, while beaten-down China stocks rose for a third straight day.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.86% to a two-week top and is on a three-day winning streak.
The index though is down 6% in August and set for its worst monthly performance since February.
Japan's Nikkei was up 0.5%, while the Australia's S&P/ASX 200 index rose 0.64%.
China shares have gained this week following the announcement of measures to lift investor confidence, including halving the stock trading stamp duty, loosening margin loan rules, and putting the brakes on new listings.
In early trading, the blue-chip CSI 300 Index was 0.3% higher, while Hong Kong's Hang Seng Index rose 0.75%.
Analysts though see a need for more action from Chinese authorities to sustain the rally. «It will take more resolute policy measures and a sustainable recovery in earnings in order for the rally to last,» Carlos Casanova, senior economist for Asia at UBP, said.
Investors' focus will be on PMI data from China later this week that will highlight the state of the economy.
Overnight, Wall Street ended sharply higher, while Treasury yields slid to three-week lows after data showed U.S.
