The broad S&P 500 has now gone positive for the year and isabove the 900 level for the first time since January, spurredby optimism on the economy and financial system. BOEING LIFTS OFF Boeing Co (BA.N) helped lift the Dow, with shares rising2.4 percent, after it said its 787 Dreamliner would be readyfor its first flight in the second quarter. [ID:nN03332841] Gains in benchmark indexes extended after U.S. data showedconstruction spending rose in March and pending home salesincreased more than anticipated. European stocks were higher in thin trade amid hopes theeconomic slump may be bottoming out. UK markets were closed fora holiday but the FTSEurofirst 300 .FTEU3 index of Europeanshares rose 1.6 percent.

Asian stocks earlier jumped to a seven-month peak onMonday, fueled by confidence in a global recovery and a jump inTaiwanese stocks. Taiwan's benchmark TAIEX index has gained12.8 percent in two days as investors see a wide-reaching dealin 2009 that would spark Chinese investment in the island. The surge in Taiwan added to broad gains across Asia aftera gauge of Chinese manufacturing rebounded to a nine-month highin April. The MSCI index of Asia-Pacific shares outside Japan.MIAPJ0000PUS was up 5.2 percent to its highest since Octoberand taking its two-month rally to 45 percent from the low hitin early March. "We have China's PMI data, which seems to signal continuedrecovery for the economy, yet another reason to stay bullish,"said Castor Pang, strategist with Sun Hung Kai Financial inHong Kong. Japanese financial markets were closed on Monday for theGolden Week break U.S BOND AND DOLLAR FLAIL Longer-dated U.S. Treasury debt prices were flat toslightly higher, with benchmark yields hovering at five-monthhighs after the Federal Reserve bought a bigger-than-expected$8.5 billion of longer-dated government debt The purchase wasthe largest since the Fed -- the U.S central bank -- beganbuying Treasuries in March The U.S.

10-year Treasury note US10YT=RR fell 1/32 inprice, while its yield rose to 3.17 percent from 3.16 percentlate on Friday. The dollar fell against the euro on the rise in risktolerance and stock market gains The euro EUR= was last up 1percent at $1.3403. The dollar was at 98.94 yen JPY=, down0.1 percent on the day U.S. June crude futures CLc1 rose $1.22 to $53.59 abarrel on the New York Mercantile Exchange as optimism aboutthe economic recovery spilled into most markets. (Reporting by Reuters bureaux worldwide; Writing by NickOlivari; Editing by James Dalgleish) Stocks Bonds China Japan.