GLOBAL MARKETS-Asian shares at 1-mth highs on renewed U.S. stimulus hopes

By Swati Pandey
SYDNEY, Oct 8 (Reuters) - A gauge of Asian shares climbed to
a one-month high on Thursday, as renewed hopes for more U.S.
stimulus helped restore investor confidence with markets now
pricing in a Democratic victory during elections in November.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS rose 0.3% for its fourth straight session of
gains to a level not seen since early September.
Australia's benchmark index .AXJO jumped 1.1% to a
one-month high helped by a larger-than-expected fiscal stimulus
announced in federal budget on Tuesday night.
New Zealand shares .NZ50 rallied on expectations of
further monetary policy easing after the country's central bank
said it was "actively considering" negative interest rates and a
funding-for-lending programme.
Japan's Nikkei .N225 added 0.5%.
Globally, risk assets have rallied since mid-March on a
flood of central bank and government support for economies
reeling from coronavirus-induced lockdowns world over.
Expectations of more aggressive easing have further boosted
sentiment.
"It's another good day for risk and equities have powered
up," said Pepperstone strategist Chris Weston in Melbourne.
"Some talk of fiscal has been in play again, but this has
become tiresome and the markets don't need a reason to rally,
they just don't need to hear negative news. So, in the absence
of any, we see equities flying and U.S. Treasuries offered."
Weston expects more monetary policy stimulus from the U.S.
Federal Reserve before Christmas if the fiscal package comes in
too small or too late. Aiding risk sentiment, U.S. President Donald Trump sent out
a flurry of tweets on Wednesday urging Congress to pass
piece-meal aid packages for targeted industries, small business
and consumers, backpedaling from his earlier stance to
unilaterally end negotiations. Further, new polls show Democratic candidate Joe Biden in a
firm lead against Trump ahead of the November elections.
Investors see such an outcome making the passage of a new
stimulus bill more likely. All eyes will now be on U.S. employment data due later in
the day, which will likely show the recovery in the world's
largest economy losing steam.
Economists predict a decline in jobless claims, however,
continued claims are expected to remain firmly above 10 million.
Despite the dour forecasts, Wall Street rallied overnight
with the Dow .DJI up 1.9%, the S&P 500 .SPX gaining 1.7% and
the Nasdaq .IXIC adding 1.88%.
In a sign the rally will extend, E-mini futures for the S&P
500 EScv1 rose 0.15%.
In currencies, the dollar was barely moved against the yen
JPY= at 106. The euro EUR= was unchanged too at $1.1764.
The biggest mover was the New Zealand dollar NZD=D3 , which
slipped 0.4% after senior officials at the country's central
bank signalled further monetary policy easing, including
negative rates, was just round the corner.
The Australian dollar AUD=D3 was 0.1% weaker at $0.7130.
In commodities, spot gold XAU= was a shade weaker at
$1,886 per ounce.
Oil prices were weaker on higher crude inventories. O/R
Brent crude futures LCOc1 fell 2 cents to $41.97 a barrel,
while U.S. crude CLc1 was down 2 cents to $39.87 a barrel.

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