China gains hoist Asian stocks to two-year peak

Chinese blue chips have gained 17% this year, compared with an almost 8% gain by the S&P 500. Foreigners' buying of Chinese government bonds hit its fastest pace in more than two years last month.

SINGAPORE: Chinese stocks led Asian markets higher on Monday as investors bet on a steady recovery for the world's no. 2 economy, though caution about the fate of U.S. stimulus kept the dollar firm and a central bank policy tweak unwound some of the yuan's gains.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 1% to 2-1/2-year highs, buoyed by a 2.4% gain in Chinese blue chips and a 2% rise by Hong Kong's Hang Seng index. Japan's Nikkei slipped 0.3% as investors fretted about corporate earnings.