* Asian stock markets : https://tmsnrt.rs/2zpUAr4
* Asian ex-Japan shares gain led by China; Nikkei rises too
* Oil prices lower on rising virus cases
* Investors jittery ahead of U.S. presidential debate on
Tues
By Swati Pandey
SYDNEY, Sept 28 (Reuters) - Chinese stocks drove Asian
markets higher on Monday, though sentiment was still cautious
ahead of a U.S. Presidential debate and as a spike in new
coronavirus cases undermined global economic recovery hopes.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS advanced 0.5% to 550.47, but still within
striking distance of a two-month low of 543.66 hit last week.
The index is set to end the month deep in the red after
three straight monthly gains as the pandemic continues to wreak
economic havoc around the world and raises investor anxiety
about sky-high valuations.
Chinese shares opened higher and helped to underpin Asian
markets after a tentative start, with the blue-chip CSI 300
index .CSI300 up 0.85%. Shanghai's SSE .SSEC climbed 0.5%.
Encouragingly, data over the weekend showed profits at
China's industrial firms grew for the fourth straight month in
August buoyed in part by a rebound in commodities prices and
equipment manufacturing.
Elsewhere, Japan's Nikkei .N225 was 0.75% higher, partly
on a lower yen, while South Korea's KOSPI index .KS11 gained
1.1%.
Australia's main share index .AXJO reversed early losses
to edge up, led by positive news on the coronavirus front with
new infections in the country's second-most populous state of
Victoria down sharply and allowing authorities to ease some of
the mobility restrictions. The broad gains in Asia follow a Wall Street rally on Friday
though analysts expect the gains to be short-lived as
expectations for economic growth start to falter.
Particularly worrying is a resurgence of COVID-19 cases in
Europe, dousing earlier hopes that authorities might have
started to exert some control on the outbreak and raising
further strains on businesses already grappling with losses.
"Clouds have started to gather over the developed world as
political uncertainty increases in the U.S. and Europe grapples
with a resurgence in COVID-19 cases," Kerry Craig, Global Market
Strategist, J.P. Morgan Asset Management.
COVID-19 cases are edging closer to 33 million around the
globe with 992,470 reportedly dead with Europe seeing a surge in
new infections. "While governments are loathe to re-introduce nationwide
lockdowns, localised and sector based restrictions may last for
some time, restraining economic activity," Craig added.
Investor focus will next be on the first debate between U.S.
President Donald Trump and rival Joe Biden on Tuesday ahead of
the November election.
A strong performance in Tuesday's debate by Biden, who
currently has a modest lead in betting odds and polls, might
boost stocks related to global trade and renewable energy, while
a perceived victory by Trump could benefit fossil fuel and
defense companies. Market focus will also be on progress on a new fiscal
support package in the United States while investors will be
closely watching UK-Europe post-Brexit trade talks as they
continue this week.
In currencies, the dollar eased from a near a two-week high
against the Japanese yen JPY= to 105.44.
The euro EUR= was last at $1.1628, not far from a
two-month trough of $.1611 touched on Friday.
The British pound GBP rose 0.1% to $1.2760.
The risk sensitive Australian dollar AUD=D3 was slightly
firmer at $0.7052 after falling for six consecutive sessions as
odds narrowed over the prospect of further monetary policy
easing in the country. In commodities, oil prices came under pressure as renewed
mobility curbs in various countries to contain a resurgence of
coronavirus cases cloud the outlook on fuel demand recovery.
U.S. Brent crude LCOc1 slipped 18 cents to $41.74 a barrel
while U.S. light crude CLc1 was down 19 cents at $40.06. O/R
Gold XAU= was a shade higher at $1,861.8, still some way
off an all-time peak of above $2,000 an ounce touched in August.
GOL/
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(Editing by Shri Navaratnam)