Marketmind: Bullish start to the week expected.

Asian markets are set for a strong start on Monday, extending last week’s upward momentum and rising risk appetite on growing hopes the U.S. economy is headed for a ‘soft landing’ after Congress’s approval last week of a debt ceiling deal that averts U.S. default.

Regional and global markets on Friday chalked up solid gains and volatility measures slumped after the release of forecast-smashing U.S. jobs figures. It looks like the ‘sell in May and go away’ maxim won’t apply this year – investors are bullish and they are buying.

Some of the moves in major regional stock markets last week are worth noting: the MSCI Asia ex-Japan index on Friday rose more than 2%, its best day in five months; Japan’s Nikkei 225 – at a 33-year high – last week rose for an eighth straight week, its best run in five years; the Hang Seng tech index snapped its longest weekly losing streak on record and rose 3.6%.

The Asian and Pacific economic data calendar on Monday will be dominated by a raft of purchasing managers index (PMI) reports, most notably for China, Japan, India and Australia, with Indonesian inflation thrown in for good measure.

Asia’s PMIs have been mixed. Manufacturing in India is growing at its fastest pace in two and a half years, South Korea’s is in its longest spell of contractionary readings in 14 years.

Market sentiment in Asia on Monday could also get a lift from signs of a potential thaw in U.S.-Sino relations, as a senior U.S. State Department official arrived in Beijing on Sunday with meetings planned for the coming week.

On the other hand, oil prices could spike higher on the news that OPEC+ is looking to cut production to counter flagging prices and a looming supply glut.

Looking ahead, investors in Asia have plenty of economic events and monetary policy decisions to get their teeth into this week.

Key Developments for Monday:

• PMIs from China, Japan, India, Australia
• Indonesia CPI inflation (May)
• Singapore retails sales (April)

(By Jamie McGeever; Editing by Diane Craft)