GLOBAL MARKETS-Asian shares defy Wall St gains as China rally cools

By Scott Murdoch and Suzanne Barlyn
HONG KONG/NEW YORK, Oct 13 (Reuters) - Asian shares slipped
on Tuesday, brushing off a firmer Wall Street lead as China's
post-holiday rally cooled, although a buoyant tech sector and
fresh optimism about U.S. stimulus are expected to continue to
support sentiment.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS dipped into negative territory in the Asian
session, down 0.09%.
Weakness emerged early in China as the Shanghai Composite
.SSEC slipped 0.5%, trimming gains made in the two trading
days since a week-long public holiday last week. China's blue
chip index CSI300 .CSI300 shed 0.3%.
The morning session of Hong Kong's Hang Seng index .HSI
was canceled as the city faced a typhoon warning.
In Japan, the Nikkei index .N225 was off 0.2%.
Despite the volatility across the region on Tuesday, Surich
Asset Management founder Simon Yuen said he was confident Asian
stock markets would retain positive fundamentals following the
U.S election on Nov 3.
"We expect Asian equities should outperform the global
equity market in next two to three years because if (Joe) Biden
is elected U.S. shall have an easier relationship with China,"
Yuen said.
"On the other hand, if (Donald) Trump is elected, China will
promote demand in terms of consumer spending in order to
increase their dominance over the world."
Australian S&P/ASX 200 .ASXJO was the region's only bright
spot, up 1% on firmer bank stocks and despite a selldown in
major coal names after reports China could look to ban
Australian imports of the commodity. .AX
On Wall Street, the Nasdaq Composite .IXIC on Monday
staged its biggest one-day rally in a month, jumping 2.56%. The
Dow Jones Industrial Average .DJI rose 0.88% and the S&P 500
.SPX gained 1.64%.
The U.S. dollar was pinned near a three-week low and gold,
another safe-haven asset, stayed below a three-week high,
slapped by investor demand for risk.
The dollar index =USD gained 0.15%, reversing an earlier
fall in the U.S. session.
Wall Street gains on Monday were driven by Apple Inc
AAPL.O , which surged 6.4% ahead of an expected debut of its
latest iPhone on Tuesday, while Amazon AMZN.O rallied 4.8%
ahead of its Prime Day shopping event this week.
Investors now await U.S. bank results with JPMorgan JPM.N
and Citigroup C.N kicking off third-quarter earnings season on
Tuesday. Goldman Sachs GS.N , Bank of America BAC.N and Wells
Fargo WFC.N and Morgan Stanley MS.N report later in the
week.
Bets that more U.S. stimulus was in the offing came despite
signs that talks in Washington had stalled again, leading the
Trump administration to call on Congress to pass a less
ambitious coronavirus relief bill.
U.S. Senate Republicans said they will go along with what
President Trump wants in coronavirus relief legislation, a White
House spokeswoman said on Monday. Beijing's tensions with Washington are also in view after
the White House moved forward with three sales of advanced
weaponry to Taiwan, sources familiar with the situation said on
Monday.
The move in the run-up to the U.S. election is likely to
anger China, which considers Taiwan a renegade
province. Investors are also closely watching the global resurgence in
coronavirus cases after British Prime Minister Boris Johnson on
Monday announced a new system of restrictions on parts of
England. Lawmakers will vote on the move on Tuesday.
Gold XAU= was 0.35% weaker to $1,915.36 an ounce.
In energy markets, oil prices slipped after a force majeure
at Libya's largest oilfield lifted, a Norwegian strike affecting
production ended and U.S. producers began restoring output after
Hurricane Delta.
In Asian trade, Brent crude LCOc1 was 0.05% higher at
$41.71 a barrel. U.S. West Texas Intermediate CLc1 climbed by
the same amount to reach $39.41.