- Chinese stocks recorded its highest intra-day rise with the CSI 300 Index surging 5.8%.
- All major stock indices were green as investors pinned hopes on fiscal stimulus and an economic recovery.
- Investors shrugged off rising COVID-19 cases. US, the world's largest economy recorded 40,000 new COVID-19 cases overnight on Sunday.
- One analyst said: "The most hated rally in history has proven many times to be resilient and should not be underestimated.
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Chinese shares faced its highest intra-day rise in 1 year on Monday as investors pinned hopes on a swift economic recovery.
The CSI 300 Index of Shanghai and Shenzhen stocks surged as much as 5.7% by the close, while the benchmark Shanghai Composite was also up almost 6%.
Jeffrey Halley, senior market analyst, Asia-Pacific at OANDA, said: "Following a US holiday on Friday, Asia has shrugged off the Covid-19 clouds that dominated the weekend press and is basking in a positive start to the week."
Liquidity was thin on Friday as the US market was shut ahead of the Fourth of July celebration.
Halley added: "Hong Kong concerns are fading as fast as they began, as the new China imposed security laws allow money to talk without the annoying interference of protestors."
The surge in Asian stocks reverberated across the globe, as all major global stock indices turned green.
Here's the market roundup as of 10.39 a.m. in London (5.39 a.m. ET)
- Asian indexes were up with China's Shanghai Composite up 5.7%, Hong Kong's Hang Seng up 3.8%, and Japan's Nikkei up 1.8%.
- European equities were up, with Germany's DAX up 1.2%, Britain's FTSE 100 up 1.6%, and the Euro Stoxx 50 up 1.4%.
- US futures are up. Futures underlying the Dow Jones Industrial Average is up 1.3% the S&P 500 is up 1% and the Nasdaq is up 1.1%.
- Oil prices rose. West Texas Intermediate is up 0.3% and Brent crude is up 1.4%.
- The benchmark 10-year Treasury yield rose to 0.69%.
- Gold rose 0.2% to $1,787 per ounce.
Milan Cutkovic, market analyst at AxiCorp, said: "Investors are showing renewed optimism at the beginning of the new trading week, and stock markets are set to extend gains."
"Despite facing negative headlines on a daily basis, some market participants are already dreaming about new record highs," he said.
Cutkovic added: "Whether this is achievable or not, remains to be seen, but the most hated rally in history has proven many times to be resilient and should not be underestimated.:
According to him the massive stimulus measures "will not be able to rally going on forever."
Naeem Aslam, chief market analyst at Avatrade, pointed out Dow Jones futures along with S&P 500 futures have started the third quarter with a "bang" and have ignored rising COVID-19 cases.
The US, the world's largest economy recorded 40,000 new COVID-19 cases on Sunday, according to data from John Hopkins University,
Aslam attributes the bullishness to an "abundance of optimism among investors over fiscal stimulus and recovery."
He said: "This optimism and economic recovery are aiding investors to overcome their fears about the resurgence of the coronavirus wave across the US and around the globe."
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