HONG KONG (Reuters) - Asian stocks punched to a seven-month peak on Monday, fueled by confidence the global economy is recovering faster than expected and on a further jump in Taiwanese shares on hopes for an influx of Chinese investment.

Taiwan's benchmark TAIEX index soared 6 percent, taking gains to 13 percent in just two days as investors see a wide-reaching deal coming later in the year as spurring heavy Chinese investment in the island, especially in financial firms.

The surge in Taiwan added to the broad gains across Asia as evidence has mounted that global trade is starting to pick up, highlighted last week by brokerage CLSA's gauge of Chinese manufacturing activity rebounding to a nine-month high in April.

The Australian dollar, seen as the currency market's bellwether for risk-taking, struck a seven-month peak while safe-haven government bonds retreated.

Data last week in Asia showed South Korean exports and industrial production both improving more quickly than expected, suggesting that regional exporters are needing to step up activity after having aggressively slashed inventories of goods.

Investors are also feeling more confident that the U.S. financial system has already suffered the worst of its crisis and is getting healthier, just before the government releases the results of stress tests later this week.

"Bank earnings are coming out fine and investors increasingly believe the result of the U.S. banking sector's stress test will be tolerable," said Kim Hak-kyun, an analyst at Korea Investment & Securities in Seoul.

The MSCI index of Asia-Pacific shares outside Japan was up 3.7 percent, its highest level since mid-October and taking its two-month rally to 44 percent from the low hit in early March. Financial and technology shares powered the rise.

On Friday the U.S. S&P 500 edged up 0.5 percent, and S&P futures were pointing to a further rise later in the day.

Trading was active even with Japanese financial markets closed on Monday for the first of three straight holidays, part of the country's Golden Week break. Many other markets in the region reopened after labor day holidays.