GLOBAL MARKETS-Asian shares buoyed by China optimism, markets eye U.S. presidential debate

* Asian stock markets : https://tmsnrt.rs/2zpUAr4
* Asian ex-Japan shares gain led by China; Nikkei rises too
* Oil prices lower on rising virus cases
* Investors jittery ahead of U.S. presidential debate on
Tues

By Swati Pandey
SYDNEY, Sept 28 (Reuters) - Asian markets were powered on
Monday by signs China's economic recovery was gaining momentum
with pent-up demand, fiscal stimulus and surprisingly resilient
exports boosting sentiment across the region.
The brighter mood was seen extending to Europe, with
eurostoxx 50 futures STXEc1 and Germany's DAX futures FDXc1
jumping 1.7% each at the open, while London's FTSE futures
FFIc1 climbed 1.3%.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS advanced 0.7% to 551.48, but stayed within
striking distance of a two-month low of 543.66 hit last week.
The index is set to end the month deep in the red after
three straight monthly gains as the coronavirus pandemic
continues to wreak economic havoc around the world and raises
investor anxiety about sky-high valuations.
Traders also remain cautious ahead of a U.S. Presidential
debate on Tuesday and on fears a spike in new coronavirus cases
in Europe could dent the global economic recovery.
On the day, Chinese shares opened higher and helped to
underpin Asian markets after a tentative start. The blue-chip
CSI 300 index .CSI300 was last up 0.3%, paring some of the
early gains.
Sentiment in Asia was supported by weekend data that showed
profits at China's industrial firms grew for the fourth straight
month in August buoyed in part by a rebound in commodities
prices and equipment manufacturing. Economic indicators in August, ranging from exports to
producer prices and factory output, have all pointed to a
further pickup in the industrial sector thanks to a slew of
measures to kick-start the world's second-biggest economy. That
has in turn has lent support to the global recovery, though the
spike in worldwide COVID-19 cases has raised fresh risks.
Elsewhere, Japan's Nikkei .N225 was 1.3% higher, partly
on a lower yen, while South Korea's KOSPI index .KS11 gained
1.35%.
Australia's main share index .AXJO reversed early losses
to finish flat.
The broad gains in Asia follow a Wall Street rally on Friday
though analysts expect the gains to be short-lived as
expectations for economic growth start to falter.
Particularly worrying is a resurgence of COVID-19 cases in
Europe, dousing earlier hopes that authorities might have
started to exert some control on the outbreak and raising
further strains on businesses already grappling with losses.
"Clouds have started to gather over the developed world as
political uncertainty increases in the U.S. and Europe grapples
with a resurgence in COVID-19 cases," Kerry Craig, Global Market
Strategist, J.P. Morgan Asset Management.
COVID-19 cases are edging closer to 33 million around the
globe with 992,470 reportedly dead with Europe seeing a surge in
new infections. "While governments are loathe to re-introduce nationwide
lockdowns, localised and sector based restrictions may last for
some time, restraining economic activity," Craig added.
Investor focus will next be on the first debate between U.S.
President Donald Trump and rival Joe Biden on Tuesday ahead of
the November election.
A strong performance in Tuesday's debate by Biden, who
currently has a modest lead in betting odds and polls, might
boost stocks related to global trade and renewable energy, while
a perceived victory by Trump could benefit fossil fuel and
defense companies. Market focus will also be on progress on a new fiscal
support package in the United States while investors will be
closely watching UK-Europe post-Brexit trade talks as they
continue this week.
In currencies, the dollar slipped from a near a two-week
high against the Japanese yen JPY= to 105.32.
The euro EUR= was last at $1.1629, not far from a
two-month trough of $.1611 touched on Friday.
The British pound GBP rose 0.3% to $1.2774.
The risk sensitive Australian dollar AUD=D3 was slightly
firmer at $0.7052 after falling for six consecutive sessions as
odds narrowed over the prospect of further monetary policy
easing in the country. In commodities, oil prices came under pressure as renewed
mobility curbs in various countries to contain a resurgence of
coronavirus cases cloud the outlook on fuel demand recovery.
U.S. Brent crude LCOc1 slipped 37 cents to $41.55 a barrel
while U.S. light crude CLc1 was down 39 cents at $39.86. O/R
Gold XAU= was a shade weaker at $1,858.2, drifting away
from an all-time peak of above $2,000 an ounce touched in
August. GOL/

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(Editing by Shri Navaratnam)