Stock indices from New York to Tokyo have pushed higher over the past month in the biggest August market bonanza in decades.

A sagging US dollar has combined with sparks of monetary and fiscal stimulus to help ignite a global equities rally during a month when traders would usually prefer focusing on the beach instead of their data terminals. Indications that major global economies are on a recovery track have also helped to ease investor jitters that dominated this spring.

The MSCI World index of stocks in developed nations has jumped 6.6 per cent in August, which if sustained, would be the sharpest rally for that month since 1986. The average move either up or down for the gauge over the past 44 years in August is half that magnitude at 3.3 per cent.