* U.S. stock indexes post monthly loss, quarterly gain
* Stimulus progress reported by Pelosi, Mnuchin
* Stocks pare gains when McConnell warns sides "far apart"
* Private payrolls, home sales data beat expectations
By Katanga Johnson
WASHINGTON, Sept 30 (Reuters) - Asian equities were poised
for a bouncy session on Thursday after U.S. stocks posted a
second consecutive quarter of gains and safe-haven assets,
including the dollar, were mixed.
Global investors spent the session digesting the rising
number of COVID-19 cases and a chaotic U.S. presidential debate,
while taking in better-than-expected U.S. private jobs data on
the last day of a volatile quarter.
All three major indexes surged after U.S. House of
Representative Speaker Nancy Pelosi and Treasury Secretary
Steven Mnuchin expressed hope for a breakthrough in partisan
stimulus negotiations. But they pared gains after Senate Majority Leader Mitch
McConnell warned the sides remain "far apart" in their talks.
"Between the U.S. presidential elections in a little over a
month, uneven economic data and uncertainty over the COVID-19
impact ... we may just see a drift in equity market pricing into
Nov. 3," said Peter Kenny, founder of Kenny's Commentary LLC and
Strategic Board Solutions LLC in New York.
"Markets exhibited heightened volatility in Q3 – largely as
a result of the COVID-19 pandemic. There was also uneven
economic reports and data that fueled a degree of risk-off as we
head into quarter end, much of which is offset today by window
dressing."
Australian S&P/ASX 200 futures YAPcm1 were up 0.19%, while
Japan's Nikkei 225 futures NKc1 were up 0.32%.
The Nikkei 225 index .N225 closed down 1.5% at
23,185.12 on Wednesday. The futures contract is up 0.84%
from that close.
Hong Kong's Hang Seng index futures .HSI .HSIc1 were up
1.38%.
Market participants were also digesting Tuesday's
contentious U.S. presidential debate, where President Donald
Trump and Democratic challenger Joe Biden talked over each other
and traded insults as they sparred over the COVID-19 pandemic,
healthcare and the economy. Better-than-expected gains in ADP's survey of private
payrolls helped push U.S. equities higher. REOPENING EYED
But some analysts say the election is not the primary driver
of markets now, but rather the level of economic reopening.
U.S. markets rose on Mnuchin's comments in the morning, but
sold off when it became apparent later that the Republicans and
Democrats were unable to compromise on a stimulus plan.
"Global investors may be pulling back from the U.S. as the
election approaches and the political dysfunction in Washington
is laid bare, but they also need to take into consideration that
a weaker U.S. economy could presage a weaker global economy,
which may drive investors to safe-haven assets" later in 2020,
said Chris Zaccarelli, chief investment officer with Independent
Advisor Alliance in Charlotte, North Carolina.
On Wall Street, the major indexes wrapped up September with
their first monthly declines since March, when mandated
shutdowns slammed the economy.
But of the 11 major sectors in the S&P 500, 10 ended the
session up, led by healthcare .SPXHC and financials .SPSY .
The indexes also ended the quarter up, with the S&P enjoying
its biggest two-quarter winning streak since 2009 and the Nasdaq
posting its biggest gain for two quarters since 2000.
Still, there are plenty of potential challenges ahead for
investors. Many are closely tracking the presidential election
in November, wary the result may not be known immediately.
Bets on volatility through the end of 2020 in markets from
derivatives to currencies and bonds may be expected, some
analysts say.
MARKETS
The Dow Jones Industrial Average .DJI rose 329.04 points,
or 1.2%, to 27,781.7 on Wednesday, the S&P 500 .SPX gained
27.53 points, or 0.83%, to 3,363 and the Nasdaq Composite
.IXIC added 82.26 points, or 0.74%, to 11,167.51.
MSCI's gauge of stocks across the globe .MIWD00000PUS
gained 0.02%.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS closed 0.1% higher.
The dollar index =USD fell 0.072%, with the euro EUR= up
0.07% to $1.1726.
U.S. crude CLc1 was last up 1.45% at $39.86 per barrel and
Brent LCOc1 was at $40.95, down 0.19% on the day. O/R
Treasuries Benchmark 10-year notes US10YT=RR last /32 in
price to yield 0.6857%, from 0.677% late on Wednesday.
The 30-year bond US30YT=RR last /32 in price to yield
1.4545%, from 1.452%.
The 2-year note US2YT=RR last /32 in price to yield
0.1309%, from 0.125%.
Spot gold XAU= added 0.1% to $1,887.35 an ounce. U.S. gold
futures GCc1 fell 0.18% to $1,884.10 an ounce. GOL/
China's stock and bond markets, foreign exchange and
commodity futures markets will be closed Oct. 1-8 for the Golden
Week holiday. South Korea and Hong Kong markets are also closed
on Thursday and Friday for holidays.
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Global assets http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Emerging markets http://tmsnrt.rs/2ihRugV
MSCI All Country Wolrd Index Market Cap http://tmsnrt.rs/2EmTD6j
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