Synovus Financial weighs merger options after drawing interest - Bloomberg
* Asian stock markets : https://tmsnrt.rs/2zpUAr4
* MSCI ex-Japan up 0.26%, Nikkei climbs about 1%
* Pfizer could have coronavirus vaccine ready by end-2020
* Pelosi optimistic of U.S. fiscal aid before Nov elections
* Currencies tread water, oil slightly higher
By Swati Pandey
SYDNEY, Oct 19 (Reuters) - Asian markets advanced toward a
recent 2-1/2-year peak on Monday powered by hopes of a U.S
fiscal package and expectations of a coronavirus vaccine by the
end of this year, though weaker-than-expected Chinese data
capped gains.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS climbed 0.6% for its second straight day of
gains, paring back slightly following third-quarter gross
domestic product data from China.
The index has risen in eight of the last 10 sessions amid a
rally in risk assets buoyed by hopes of a coronavirus vaccine
and expectations of a so-called "blue wave", which would see the
Democrats claim victory in November's elections.
Chinese shares started higher though the blue-chip index
.CSI300 pared gains after China's GDP data missed forecasts,
though separate monthly indicators pointed to an expansion in
economic activity.
China's gross domestic product (GDP) grew 4.9% in
July-September from a year earlier, slower than the median
forecast of 5.2%. Monthly indicators beat forecasts - industrial output
accelerated 6.9% in September from a year earlier, when analysts
were looking for a 5.8% gain from a 5.6% rise in August. Retail
sales edged up 3.3% last month from a year earlier against
expectations for 1.8% growth.
"The rebound in Q3 GDP was less strong than expected, but
was still a decent 4.9% YoY. September data beat expectations,
suggesting a pickup in momentum towards the latter part of Q3,"
said Frances Cheung, head of macro strategy for Asia at Westpac
in Singapore.
"The pickup in momentum was broad-based, which bodes well
for the Q4 outlook."
Japan's Nikkei .N225 and Australia's benchmark index
.AXJO were each up 1.1%.
Boosting overall sentiment, drugmaker Pfizer Inc PFE.N
said on Friday it could have a coronavirus vaccine ready in the
United States by the end of this year. E-Mini futures for the S&P 500 ESc1 jumped 0.6% in Asian
trading after House Speaker Nancy Pelosi said on Sunday she was
optimistic legislation on a wide-ranging coronavirus relief
package could be pushed through before the election.
But with her negotiating partner, Treasury Secretary Steven
Mnuchin, in the Middle East until Tuesday, such a timeframe
would seem to be overly optimistic, analysts said.
Investors are also concerned about rising coronavirus cases
to help curb the spread of the disease.
Global coronavirus cases rose by more than 400,000 for the
first time late on Friday, a record one-day increase as much of
Europe enacts new restrictions to curb the outbreak.
Later in the week, key risk events include minutes of
Australia's central bank meeting, the final U.S. presidential
debate and global manufacturing indicators.
Action in currencies was muted with the U.S. dollar, usually
perceived as a safe-haven asset, =USD flat at 93.696 against a
basket of six major currencies. USD/
The euro EUR= slightly weaker at $1.1712.
Sterling was slightly higher though it was still near
two-week lows after UK Prime Minister Boris Johnson told
businesses to get ready for a no-deal Brexit in case
negotiations with the European Union fail to produce a free
trade agreement. "EU-UK trade talks are flirting with collapse," ANZ
economists said.
"UK Prime Minister Johnson said the UK needs to prepare for
a no-deal outcome, as both sides cannot agree on a Canada-style
FTA. Talks resume in London on Monday, but without the political
willingness to shift ground, there is little the negotiators can
achieve."
In commodities, Brent crude futures LCOc1 slipped 14 cents
to $42.79 a barrel, and U.S. West Texas Intermediate (WTI)
crude futures CLC1 fell 14 cents to $40.74 a barrel.
Spot gold XAU= was a shade firmer at $1,900.8 an ounce.
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(Editing by Sam Holmes and Gerry Doyle)