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By Wayne Cole
SYDNEY (Reuters) - Asian shares neared all-time peaks on Monday after Wall Street boasted its best start to a year in over a decade, with brisk economic growth and benign inflation proving a potent cocktail for risk appetite.
At 587.99 the index is within spitting distance of the record top of 591.50 hit in November 2007.
Australian stocks gained 0.3 percent to notch another decade summit, while South Korea rose 0.1 percent. Japan's Nikkei was closed for a holiday but touched its highest since 1992 last week.
"It was the global synchronised growth that drove earnings and equity markets higher last year and the global economy has entered 2018 firing on all cylinders," said analysts at Bank of America Merrill Lynch, predicting the global economy could expand at 4 percent or more this year.
"This growth is keeping our quant models bullish and driving earnings revisions to new highs," they added. "We stay long outside the U. S., with Asia ex-Japan and Nikkei our growth plays, Europe still for yield."
Friday's U. S. jobs report did nothing to challenge that outlook.
While payrolls missed forecasts, the report was perfect for equities given unemployment stayed low but with little sign of the inflationary pressures that would make the Federal Reserve more aggressive in tightening policy.
Wall Street has already enjoyed its best start to a year in more than a decade, with the Dow up 2.3 percent last week and the S&P 500 2.6 percent. The tech-heavy Nasdaq led the charge with a rise of 3.4 percent.
The quarterly U.
S. earnings season kicks off this week with the Street expecting solid growth of around 10 percent, though many companies are also likely to be announcing one-off charges to account for recent tax changes.
INVESTORS STUFFED WITH EUROS
In currency markets, the dollar had steadied for the moment after a rocky couple of weeks.
On Friday, surprisingly strong Canadian jobs data stoked speculation interest rates there could rise as early as next week and sent the local currency to a three-month peak.
Upbeat euro zone data has likewise underpinned the single currency at $1.2036, though it has so far failed to clear major chart resistance at the September top of $1.2092.
Japanese Prime Minister Shinzo Abe on Sunday called on central bank governor Haruhiko Kuroda to keep up efforts to reflate the economy, but added he was undecided on whether to reappoint Kuroda for another five-year term.
The combination of a soft U. S., dollar and strong global growth has been positive for commodities, with everything from coal to iron ore to copper in demand.
Spot gold made a 3-1/2-month high last week and was trading at $1,320.51 an ounce on Monday.
Brent was last up 15 cents at $67.77, while U. S. crude rose 20 cents to $61.64 per barrel.
(Editing by Sam Holmes)
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)