GLOBAL MARKETS-Asian shares recover early losses on Chinese trade data

By Scott Murdoch
HONG KONG Oct 13 (Reuters) - Asian stock markets steadied on
Tuesday after Chinese trade data underscored the country's
economic recovery, while fresh optimism about U.S. stimulus is
likely to keep global investor sentiment elevated.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS was trading up 0.12% by early afternoon after
falling into negative territory early on Tuesday.
The Shanghai Composite .SSEC , which initially slipped 0.5%
- trimming recent gains since a week-long public holiday last
week - recovered some ground in the afternoon session to be down
0.05%.
China's blue chip index CSI300 .CSI300 was up 0.3%, after
dipping 0.3% early in the day.
Sentiment improved after Chinese customs data showed exports
rose 9.9% in September from a year earlier, broadly in line with
analysts' expectations and up from a 9.5% increase in August.
Imports jumped 13.2% compared to a 2.1% drop in
August. "The near-term outlook for Chinese exports is supported by
the continued global recovery," said Commonwealth Bank economist
Kevin Xie.
"Growth in Chinese exports may start to ease because the
path of the future recovery is likely to be gradual," he added.
In Japan, the Nikkei index .N225 gained 0.1% to hit
23,590. Oil prices also firmed.
Trading on Hong Kong's Hang Seng index .HSI was canceled
as the city faced a typhoon warning.
S&P 500 futures ESc1 pared losses in afternoon trade and
last sat 0.2% lower. Euro STOXX 50 futures STXEc1 were steady
and FTSE futures FFIc1 rose 0.2%.
During the session, it emerged that Johnson & Johnson
JNJ.N temporarily paused its COVID-19 vaccine candidate
clinical trials due to an unexplained illness in a study
participant. Despite the volatility across the region, 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."
Australia's benchmark S&P/ASX 200 .ASXJO was a bright
spot, up 1% on firmer bank stocks, 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%.
"Markets are really thinking about what will happen in the
U.S next year and the size of the next stimulus package," said
JPMorgan Asset Management global market strategist Kerry Craig.
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 0.1%, reversing an earlier
fall in the U.S. session.
Investors 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. 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. 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 0.31% weaker at $1,915.76 an ounce.
In Asian trade, Brent crude LCOc1 was 0.3% higher at
$41.86 a barrel. U.S. West Texas Intermediate CLc1 climbed by
the same amount to reach $39.55.