Asian Stocks Climb as Global Growth Seen Intact

• Asian Stocks Climb as Global Growth Seen Intact

Asian stocks climbed outside of China, with Japanese shares rallying after a three-day holiday, amid optimism on improving global growth following Emmanuel Macron’s victory as France’s next president.

Japan’s Topix index rose to the highest level since December 2015, leading an advance across the region after U.S. stocks closed at a record Friday on better-than-forecast data on American jobs. Chinese equities extended declines that have wiped more than $400 billion from the value of local shares. The euro erased early gains to retreat, with investors having largely positioned for Macron’s victory in the run-up to Sunday’s vote. Oil extended a rebound while gold climbed.

With the hurdle determining France’s new leader now cleared, investors are turning their focus on global growth and corporate earnings, after last week’s robust American jobs report and Federal Reserve comments bolstered optimism in the U.S. economy.

In China, domestic equities and bonds are being hit by the government’s steps to rein in financial leverage. The country’s banking, insurance and securities regulators have all played a part in the clampdown, focusing much of their attention on the nation’s shadow banking system. The selloff that began last month continued Monday, paring its steepest declines after data showed China’s overseas shipments held up in April. Read more here on the measures and the impact.

Here’s what investors will be watching this week:

• The annual Sohn Investment Conference is held in New York City, where top Wall Street investors including David Einhorn and Bill Ackman will share their insights with portfolio managers, asset allocators and private investors.
• Fed official Loretta Mester speaks on the U.S. economy in Chicago and James Bullard participates in a panel discussion in Atlanta on Monday. Central bank policy makers left interest rates unchanged last week, indicating that a disappointing first quarter wouldn’t stop them from raising rates twice more in 2017 following a hike in March.
• South Korea heads to the polls on Tuesday to elect a new president following the ouster of Park Geun-hye in a corruption scandal. Polls show former opposition leader Moon Jae-in, who favors a softer touch on North Korea, well ahead of centrist Ahn Cheol-soo.
• Earnings this week include results from Walt Disney Co., Mitsubishi Corp., Toyota Motor Corp. and Deutsche Telekom AG.