GLOBAL MARKETS-Stocks rise on White House reports of Trump's improving health

* Asian stock markets: https://tmsnrt.rs/2zpUAr4
* Trump's contraction of coronavirus stuns investors
* U.S. stock futures rise on expectations Trump will leave
hospital
* Dollar falls against Swiss franc but rises versus the yen

By Stanley White
TOKYO, Oct 5 (Reuters) - Stocks rose on Monday as signs that
President Donald Trump's health was improving eased some of the
political uncertainty caused by his coronavirus infection, which
sent investors rushing for safety last week.
Trump, 74, was flown to hospital for treatment for the
coronavirus on Friday, but his doctors say he has responded well
and could return to the White House on Monday. That helped U.S. S&P 500 e-mini futures EScv1 rise 0.62%,
while Nasdaq futures NQc1 gained 0.89%.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS rose 1.08%. Euro Stoxx 50 futures STXEc1 were
up 0.82%, German DAX futures FDXc1 rose 0.72%, and FTSE
futures FFIc1 gained by 0.91%.
Overhanging the relief rally, however, are continued
uncertainty about his condition and some concerns that Trump's
case could be more severe than public disclosures
suggest. "Equities and other risk-on traders should be well-supported
by easing concerns about Trump's health," said Junichi Ishikawa,
senior currency strategist at IG Securities in Tokyo.
"For the dollar, the impact is not quite as clear cut. It
should fall against most currencies due to an increase in risk
appetite, but the yen is also weak, and that's the one currency
the dollar can rise against."
Australian stocks .AXJO jumped 2.48% for the biggest daily
gain since July 21. Japan's Nikkei .N225 rose 1.19%. China's
financial markets are closed for a public holiday.
The dollar edged higher against the yen but fell slightly
against the Swiss franc as traders jockeyed for position ahead
of what could be a volatile day in global markets.
Treasury yields rose slightly on reduced demand for the
safety of holding government debt.
Doctors treating Trump say they are pleased with his
progress. Relief about his health has fuelled a rally in
equities and other risky assets as investors prepare for the
run-up to next month's U.S. presidential election.
Investors around the world were stunned late Thursday after
Trump announced that he and the first lady had tested positive
for coronavirus.
With less than a month until the presidential election on
Nov. 3, Trump's contraction of the coronavirus is another source
of market volatility that makes the outcome of the vote even
more difficult to predict.
Democrat Joe Biden opened his widest lead in a month in the
U.S. presidential race, according to a Reuters/Ipsos poll
released on Sunday. The White House initially sent mixed messages about Trump's
health, helping fuel political uncertainty and putting the
investor focus tightly on any news about his condition.
Some traders were particularly concerned by doctors'
admission that Trump had been given supplementary oxygen and
steroids, which are normally used to treat severe cases of
COVID-19. Doctors not involved in Trump's treatment said they
suspected his condition might be worse than initially reported,
because his age makes him more vulnerable to complications.
White House doctors used remdesivir, an intravenous
antiviral drug sold by Gilead Sciences GILD.O , to treat the
president.
The U.S. dollar rose 0.21% to 105.56 yen JPY=D3 but fell
0.39% to 0.9174 Swiss franc CHF=EBS as some investors adjusted
positions in safe-harbour currencies.
The Australian dollar AUD=D3 rose 0.26% to $0.7183 after
the Australian government, which hands down a federal budget on
Tuesday, announced additional wage subsidies to help the labour
market. Yields on benchmark 10-year Treasuries US10YT=RR rose to
0.7072% and the yield curve US2US10=TWEB steepened slightly in
a sign that the majority of investors felt comfortable taking on
more risk.
Gold XAU= , another asset often bought during times of
uncertainty, fell 0.32% to $1,892.74, highlighting increased
risk appetite.
Brent crude futures LCOc1 rose 2.09% to $40.09 a barrel
while U.S. crude futures CLc1 gained 2.38% to $37.93 per
barrel.