GLOBAL MARKETS-Asian shares near 6-week highs, eyes on Fed, U.S. GDP

* Asian stock markets : https://tmsnrt.rs/2zpUAr4
* Shares rise for a third straight day on Monday
* 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 for a third
straight session on Monday as risk appetite was aided by recent
data showing the world economic recovery from the coronavirus
pandemic was well on track while the U.S. dollar loitered near
two-month lows.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS climbed 0.2% to 699.63, the 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.
South Korea's KOSPI index .KS11 rose 0.3% while New
Zealand shares added 0.6%.
Japan's Nikkei .N225 was down 0.3% while Australia's
benchmark share index .AXJO was off a shade too 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 were slightly weaker
in early Asian trading 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 was last at 98.881 against a
basket of major currencies, not too far from last week's low of
90.808, a level not seen since March 3.
The greenback was a shade weaker on the safe-haven Japanese
yen JPY= at 107.82. Against the euro EUR= , it was down 0.1%
at $1.2090. The risk sensitive Australian dollar AUD=D3 stayed
trapped in a narrow band to be last at $0.7744.
In commodities, U.S. crude CLc1 fell 13 cents to $62.01
per barrel and Brent LCOc1 was at $65.93, up 18 cents in early
Asian trading.
Gold was barely changed at 1,776.56. XAU=

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(Editing by Sam Holmes)