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GLOBAL MARKETS-Asian shares rebound on strong China data, oil on slippery slope

Published 02/11/2020, 03:40
Updated 02/11/2020, 03:42
© Reuters.
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(Updates with Chinese data)
* Asian stock markets: https://tmsnrt.rs/2zpUAr4
* Oil prices fall to the lowest since late-May
* MSCI ex-Japan bounce, Nikkei starts higher
* Rising global coronavirus cases, lockdowns worry investors

By Swati Pandey
SYDNEY, Nov 2 (Reuters) - Asian shares bounced off one-month
lows on Monday on solid data from China showing factory activity
expanded at its fastest pace in a decade while oil prices
skidded as many Western countries slid back into
coronavirus-driven lockdowns.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS climbed 0.5% to 573.04, as China's Caixin/Markit
Manufacturing Purchasing Managers' Index offered hope the
region's success in containing the coronavirus could spare it
the economic pain being inflicted on Europe and the United
States.
All major indexes except New Zealand were up on Monday.
Australian shares .AXJO rose 0.4%.
Chinese shares were higher with the blue-chip CSI300
.CSI300 rising 0.8% with the country's vast industrial sector
steadily returning to levels seen before the COVID-19 pandemic
paralysed huge swathes of the economy. Japan's Nikkei .N225 jumped 1.5%.
E-Mini futures for the S&P 500 ESc1 added 0.1%, with
investor focus turning to the U.S. Presidential elections on
Tuesday.
The global outlook is dimming as many Western countries
battle still rising COVID-19 infections and go back into virus
lockdowns.
Global coronavirus cases surpassed 500,000 last week with
Europe crossing the bleak milestone of 10 million total
infections. The United Kingdom is grappling with more than
20,000 new cases a day while a record surge of U.S. cases is
killing up to 1,000 people a day. Fresh coronavirus-induced lockdowns have raised concerns
over the outlook for fuel consumption, sending Brent crude
LCOC1 to a low of $35.74 per barrel, a level not seen since
late May. U.S. crude went as low as $33.64. O/R
Underwhelming outlooks and results from some of Wall
Street's largest companies last week, including Apple AAPL.O
and Facebook FB.O , further soured the mood and dragged U.S.
stocks lower last week. .N
"Markets are looking ahead of Q4 and early 2021 where the
growth outlook looks clouded given the move to stricter
lockdowns in Europe," Perpetual analysts wrote in a note.
They said a -1% hit to European growth would send global
gross domestic product down by 0.5% over the subsequent 12
months.
"The key question here is how long are the lockdowns needed
to get the virus under control."
Ahead of the last campaign weekend, Republican President
Donald Trump trails Democratic challenger Joe Biden in national
opinion polls partly because of widespread disapproval of
Trump's handling of the coronavirus.
Opinion polls in the most competitive states that will
decide the election have shown a closer race, still favouring
Biden. In currencies, the risk-sensitive Australian dollar AUD=D3
slipped 0.4% to go below 70 U.S. cents for the first time since
July. It was last at $0.7018.
The Japanese yen JPY= was flat at 104.66 per dollar, while
the British pound GBP= was last a shade weaker at $1.2931. The
euro EUR= was barely changed at $1.1640.
That left the dollar index, which measures the greenback
against a basket of peers, flat at 94.07. =USD
A risk-on revival after the U.S. election could however see
the dollar resume its slide from the March highs, analysts said.

JPMorgan analysts said the market likely views a Biden win
as "short-term neutral" but "long-term negative" as his expected
tax policy outweighs the benefits from a large stimulus package.
"SPX may have upside to ~3400, but it would have larger
downside depending on the details of the package, potentially to
~2,500," they added.
On Friday, the S&P 500 .SPX lost 1.21% to close at
3,269.96. The Nasdaq Composite .IXIC dropped 2.45% while the
Dow .DJI fell 0.6%.

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Asia stock markets https://tmsnrt.rs/2zpUAr4
Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
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