* MSCI ex-Japan at highest since late January
* Australia, South Korea lead gains; Chinese shares in red
* Dollar at 27-month low on easy monetary policy
* Fed meeting minutes awaited
By Swati Pandey and Chibuike Oguh
SYDNEY, Aug 19 (Reuters) - Asian shares climbed to a
seven-month peak on Wednesday tracking the S&P 500, which scaled
all-time highs driven by ever expanding policy stimulus aimed at
cushioning the blow to economies from the coronavirus pandemic.
MSCI's broadest index of Asia-Pacific shares outside of
Japan .MIAPJ0000PUS rose 0.3%, up for a third straight day to
570.80 points, a level not seen since late January.
The gains were driven by Australian shares .AXJO , up 0.8%
and South Korea .KS11 , which added 0.6%. Japan's Nikkei
.N225 nudged up too though Chinese shares started weaker with
the blue-chip CSI300 index .CSI300 off 0.7%.
Overnight, both the S&P 500 and Nasdaq Composite set records
soon after the opening bell following strong sales growth
reported by major U.S. retailers including Walmart, Kohl's and
Home Depot.
The closely-watched S&P 500 topped an all-time peak reached
in February just before the onset of the COVID-19 pandemic drove
the benchmark index to lows on March 23. The index has surged
about 55% since then.
At just 126 days, that "is the fastest bear market recovery
ever," said Tapas Strickland, economist at Melbourne-based
National Australia Bank.
Nasdaq clocked its 18th record closing high since early
June.
The U.S. Federal Reserve's intervention in financial markets
to maintain liquidity in the midst of the coronavirus pandemic
has pushed risk assets to all-time highs and reduced demand for
safe-havens, weakening the greenback. Market optimism was also buoyed by data showing an
acceleration in U.S. homebuilding to the most in nearly four
years in July, signifying that the housing sector is emerging as
one of the few areas of strength.
In addition, hopes of an interim fiscal package were
re-ignited overnight with House Speaker Nancy Pelosi indicating
a willingness to cut their proposals in order to seal a deal,
NAB's Strickland noted.
Markets were also paying close attention to minutes from the
Fed's recent meeting due later in the day "for any hints on what
the Fed could announce regarding forward guidance come
September," Strickland said.
The Fed has cut rates to near zero to bolster business
through the pandemic, sending the dollar to a 27-month low.
=USD
The dollar index was last unchanged at 92.23 from above-100
in March. The safe haven Japanese yen JPY= was a tad firmer at
107.51 versus the greenback.
The risk-sensitive Australian dollar AUD=D3 traded near
$0.7255, while the kiwi NZD=D3 last bought $0.6611.
Gold flirted with key charted resistance of $2,000 an ounce
to be last at $1,998.
U.S. gold futures GCv1 were a shade weaker at $2,005.2.
Oil prices skidded as concerns grew that U.S. fuel demand
may not recover quickly. O/R
Brent crude LCOc1 down 26 cents at 45.20 and U.S. crude
CLc1 off 18 cents at $42.71.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Global assets http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Emerging markets http://tmsnrt.rs/2ihRugV
MSCI All Country Wolrd Index Market Cap http://tmsnrt.rs/2EmTD6j
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>