* Asian stock markets: https://tmsnrt.rs/2zpUAr4
* Oil prices fall to the lowest since late-May
* MSCI ex-Japan slightly lower, Nikkei starts higher
* Rising global coronavirus cases, lockdowns worry investors
By Swati Pandey
SYDNEY, Nov 2 (Reuters) - Oil prices hit five-month lows and
shares extended losses on Monday on worries about global demand
as many economies slid back into coronavirus-induced lockdowns
while upcoming U.S. presidential elections led to heightened
caution.
Risk appetite has taken a hit in the past week on the back
of rising coronavirus cases and lockdowns, fears of the prospect
of a tightly contested U.S. presidential election, absence of a
pre-election U.S. fiscal stimulus and gloomy corporate outlook.
Global coronavirus cases surpassed 500,000 last week with
Europe crossing the bleak milestone of 10 million total
infections. The United Kingdom is grappling with more than
20,000 new cases a day while a record surge of U.S. cases is
killing up to 1,000 people a day. Fresh coronavirus-induced lockdowns have raised concerns
over the outlook for fuel consumption, sending Brent crude
LCOC1 to a low of $35.74 per barrel, a level not seen since
late May. U.S. crude went as low as $33.64. O/R
Underwhelming outlooks and results from some of Wall
Street's largest companies last week, including Apple AAPL.O
and Facebook FB.O , further soured the mood and dragged U.S.
stocks lower last week. .N
On Monday, MSCI's broadest index of Asia-Pacific shares
outside Japan .MIAPJ0000PUS held near one-month lows at
569.86, down 0.1%.
Japan's Nikkei .N225 was up 0.6%.
Australian shares .AXJO were down 0.1% while New Zealand's
benchmark index eased 0.6%.
"It's going to be a big week with the U.S. election on
Tuesday being the main event," said AMP economist Shane Oliver.
"The U.S. election has tightened further over the last week,
making it harder to call," Oliver added.
"The tightening is likely weighing on shares as it implies
an increased risk of a contested election and less chance of
substantial post-election fiscal stimulus to the extent that a
blue wave that sees the Democrats win the presidency, control of
the Senate and the House may be somewhat less likely."
Ahead of the last campaign weekend, Republican President
Donald Trump trails Democratic challenger Joe Biden in national
opinion polls partly because of widespread disapproval of
Trump's handling of the coronavirus.
Opinion polls in the most competitive states that will
decide the election have shown a closer race, still favouring
Biden. In currencies, the risk-sensitive Australian dollar AUD=D3
slipped 0.4% to go below 70 U.S. cents for the first time since
July. It was last at $0.7007.
The Japanese yen JPY= strengthened a bit to 104.57 per
dollar, while the British pound GBP= was last a shade weaker
at $1.2927. The euro EUR= was down 0.1% at $1.1639.
That left the dollar index, which measures the greenback
against a basket of peers, up 0.08% =USD .
A risk-on revival after the U.S. election could however see
the dollar resume its slide from the March highs, analysts said.
JPMorgan analysts said the market likely views a Biden win
as "short-term neutral" but "long-term negative" as his expected
tax policy outweighs the benefits from a large stimulus package.
"SPX may have upside to ~3400, but it would have larger
downside depending on the details of the package, potentially to
~2,500," they added.
On Friday, the S&P 500 .SPX lost 1.21% to close at
3,269.96. The Nasdaq Composite .IXIC dropped 2.45% while the
Dow .DJI fell 0.6%.
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