GLOBAL MARKETS-Asian shares at 6-week highs, 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 climbed to
six-week highs on Monday amid signs the world economic recovery
was still well on track, though rising COVID-19 cases in the
region weighed on sentiment, pushing oil prices lower.
Futures for Eurostoxx 50 STXEc1 were flat as were those
for Germany's DAX FDXc1 while London's FTSE futures FFIc1
were a shade weaker. E-mini futures for the S&P 500 ESc1 were
barely changed.
The mood was relatively upbeat in Asia where MSCI's broadest
index of Asia-Pacific shares outside Japan .MIAPJ0000PUS
reached its highest since March 18, despite a late sell-off in
Chinese shares.
"Markets have priced in the pandemic as a sprint and not a
marathon. That premise could come under stress in the weeks to
come," said Jeffrey Halley, senior Asia-Pacific market analyst
for OANDA.
Fears surging COVID-19 cases in India will drive down fuel
demand in the world's third-biggest oil importer put pressure on
oil prices on Monday after they fell about 1% last week. O/R
China's blue-chip CSI 300 index .CSI300 fell 0.7% after
hitting its highest level since April 6 earlier in the day.
Australia's benchmark share index .AXJO was off 0.2% with a
public holiday in five of the country's eight states and
territories.
South Korea's KOSPI share index .KS11 rose 0.7% while New
Zealand shares added 0.6% and Japan's Nikkei .N225 reversed
early losses to be up 0.4%.
So far, risk assets such as equities have done well, with
the MSCI ex-Japan index on track for a third straight year of
positive returns. Since April 2020, the index has offered
positive returns in all but three months.
Recent data pointing to a solid global economic recovery had
bolstered confidence in risk assets.
Early April manufacturing activity indicators out last week
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.
First-quarter U.S. gross domestic product data due later in
the week is likely to show activity probably returned to
pre-pandemic levels, analysts said.
"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.
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 90.679 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 107.80. The euro EUR= rose 0.1% to $1.2105. The
risk sensitive Australian dollar AUD=D3 stayed trapped in a
narrow band to be last at $0.7766.
In commodities, U.S. crude CLc1 fell 73 cents to $61.41
per barrel and Brent LCOc1 eased 78 cents to $65.33.
Gold climbed 0.1% to $1,779.19 an ounce. XAU=

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(Editing by Sam Holmes)