Asian stocks reach 29-month top

Asian shares notched a 29-month high on Monday as investors wagered monetary and fiscal policies globally would stay super stimulatory, while an upbeat reading on China's service sector augured well for continued recovery there.

MSCI's broadest index of Asia-Pacific shares outside Japan MIAPJ0000PUS rose 0.5% to reach its highest since March 2018, extending a 2.8% gain last week.

Chinese blue chips CSI300 firmed 0.7% to reach levels not seen since mid-2015. Surveys showed Chinese manufacturing activity edged back a tick to 51.0 in July, but services jumping a full point to 55.2 in a hopeful sign of reviving consumer demand. futures for the S&P 500 ESc1 climbed another 0.5%, while EUROSTOXX 50 futures STXEc1 added 1%.

Tokyo's Nikkei N225 rallied 1.9% aided by news Warren Buffett's Berkshire Hathaway (NYSE: BRKa ) BRKa.N had bought more than 5% stakes in each of the five leading Japanese trading companies. Nikkei had dipped on Friday after Prime Minister Shinzo Abe's resignation stirred doubts about future fiscal and monetary stimulus policies.

Those concerns were eased somewhat by news Chief Cabinet Secretary Yoshihide Suga, and a close ally of Abe, would join the race to succeed his boss. A slimmed-down leadership contest is likely around Sept. 13 to 15. was now on a host of Federal Reserve officials that are set to speak this week, kicking off with Vice Chair Richard Clarida later Monday as they put more flesh on the bank's new policy framework.