Asian stocks rally as confidence is boosted by cheerful data

Asian stocks edged higher on Monday boosted by the record closing high for U.S. equities following the positive consumer sentiment and future economic activity data on Friday. The MSCI Asia Pacific Index gained 1.2% to 144.18 as of 14:47 in Hong Kong.

In Japan Nikkei hit a new five-and-a-half year high after the government upgraded its economic assessment for the first time in two months. The optimistic economic outlook which boosted sentiment outweighed the effects of the stronger yen.

- Nikkei 225 closed 1.47% higher at 15360.81

- Topix closed 1.30% higher at 1269.51

In Australia stocks closed above 5,200 as the continued weakness in the Australian dollar is boosting the stocks with exposure to the U.S market. Investors await Tuesday`s minutes from the latest Reserve Bank of Australia meeting for signs of further stimulus.

- S&P/ASX 200 closed 0.55% higher at 5209.04

- New Zealand’s NZX 50 closed 0.02% higher at 4598.65

In China the Shanghai Composite rose to an eight-week high after April`s new home prices rose at their fastest pace in two years while in Hong Kong stocks rose more than 1.7% on news of a joint venture by Danone Group.

- Hong Kong’s Hang Seng closed 0.17% higher at 23082.68

- China’s Shanghai Composite Index closed 1.22% higher at 2251.81

In South Korea Kospi moved further away from a six-week high of 1,991 amid rising tensions with North Korea over the weekend; despite international sanctions. Pyongyang tested four short-range missiles for two days in a row.

- Kospi closed 0.22% lower at 1982.43