HONG KONG, June 21 Reuters Asian hedge funds led global gains in May and the first five months, as bullish sentiment towards regional equities and winning positions in China boosted performance.

Asiafocused longshort funds across all strategies rose 2.8 on average in May and 7.5 during the JanuaryMay period, showing they outperformed funds that primarily invest in the United States or Europe, according to a UBS prime brokerage note this week.

In comparison, U.S. or Europe focused hedge funds were up 1 each on average in May, and 6 each for the first five months.

Driven by a surge in artificial intelligence AI stocks and a rebound in Chinese markets, the MSCI Asia exJapan index has jumped 8 so far this year and is trading at its highest since April 2022.

Japan39;s Nikkei is also up 15 so far this year, helped by economic recovery and corporate reforms.

UBS said the gains made by Asian hedge funds in May were largely driven by Chinafocused funds, while the performance of Japanfocused funds was mixed.

Greenwoods Asset Management, one of Asia39;s largest hedge funds, saw its flagship fund Golden China, rise 18.3 for the year to May, and 7 in May alone, mainly on contributions from China tech and energy stocks, according to an investor letter reviewed by Reuters.

Greenwoods declined to comment.

Meanwhile, Pinpoint Asset Management39;s China fund jumped 11.4 in the first five months, according to a note from HSBC.

MSCI China stocks is up 23 from its January trough, and…