GLOBAL MARKETS-Asian shares pulled higher by China, eyes on Fed, U.S. GDP

* Asian stock markets : https://tmsnrt.rs/2zpUAr4
* Shares rise for a third straight day to near 6-week highs
* Risk appetite bolstered by solid PMI data
* Eyes on U.S. GDP data, Fed meeting this week

By Swati Pandey
SYDNEY, April 26 (Reuters) - Asian stocks rose on Monday
with Chinese shares near three-week highs as signs the world
economic recovery was well on track bolstered risk appetite,
while the U.S. dollar slipped to a two-month low.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS jumped 0.3% to surpass critical chart resistance
of 700 points and reach its highest since March 18.
The index has had a strong run lately as it clocked its
second consecutive weekly rise on Friday and was on track for
another month of gains. Since April 2020, the index has offered
positive returns in all but three months.
Chinese shares were firm with the blue-chip CSI 300 index
.CSI300 up 0.4% to its highest since Apr. 6.
South Korea's KOSPI index .KS11 rose 0.4% while New
Zealand shares added 0.6%.
Japan's Nikkei .N225 reversed early losses to be up 0.1%
while Australia's benchmark share index .AXJO was off a touch
with a public holiday in five of the country's eight states and
territories.
Risk appetite was whetted by early April manufacturing
activity indicators out last week, which pointed to a robust
start to the second-quarter with data hitting record highs in
the United States and signalling an end to Europe's double dip
recession.
Investors embraced the strong data, shrugging off earlier
concerns about potential higher U.S. taxes on capital gains
under the Biden administration.
On Friday, U.S. shares ended firmer with the S&P 500 .SPX
hitting a record intraday peak to end 1.1% higher. The Dow
.DJI rose 0.7% while the Nasdaq Composite .IXIC added 1.4%.
E-mini futures for the S&P 500 ESc1 gave up early losses
to be flat on Monday.
First-quarter U.S. gross domestic product data is due later
in the week with expectations activity will have likely returned
to pre-pandemic levels.
"We estimate that the economy will close the output gap and
rise above potential in the second half of this year," ANZ
economists wrote in a morning note, suggesting more upside for
shares.
Europe "cannot match this, but as 2021 progresses into 2022,
the growth differential to the U.S. will narrow."
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. "Stated differently, this may be the last quarter where
companies can avoid being penalized for not seeing revenue
recover quickly and/or not giving guidance," JPMorgan analysts
wrote in a note.
They said the "bull case" for equities would be supported by
reopening from coronavirus lockdowns, consumer spending and
corporate earnings combined with reduced market volatility.
The "bear case", on the other hand, would be triggered by
inflation, delays to re-opening, weaker economic growth and
corporate profits and a commodity recession.
Strong recent data meant bonds were sold off, though 10-year
U.S. Treasury yields US10YT=RR were not far from a recent
six-week low on expectations the U.S. Federal Reserve will stay
accommodative at its meeting this week.
In currencies, Turkey's lira edged lower TRYTOM=D3 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.
The U.S. dollar's index =USD slipped to 90.739 against a
basket of major currencies, a level not seen since March 3.
The greenback was a shade weaker on the safe-haven Japanese
yen JPY= at 107.76. The euro EUR= rose 0.1% at $1.2105. The
risk sensitive Australian dollar AUD=D3 stayed trapped in a
narrow band to be last at $0.7762.
In commodities, U.S. crude CLc1 rose 4 cents to $62.18 per
barrel and Brent LCOc1 was flat at $66.11.
Gold climbed 0.1% to $1,778.92 an ounce. XAU=

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(Editing by Sam Holmes)