REFILE-GLOBAL MARKETS-Piecemeal U.S. stimulus hopes boost stocks, Europe opens up

(Corrects grammar in paragraph 3)
By Swati Pandey
SYDNEY, Oct 8 (Reuters) - A gauge of Asian shares climbed to
a one-month high on Thursday on renewed hopes for more U.S.
stimulus, while investors decided a key U.S. political debate
ahead of November elections had not altered the odds much.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS rose 0.6% for its fourth straight session of
gains to a level not seen since early September.
A policy-heavy debate on Wednesday between Republican Vice
President Mike Pence and his Democratic rival candidate Kamala
Harris reinforced expectations for a tight U.S. election next
month that could result in no clear outcome and hurt stock
markets.
Still, U.S. stock futures EScv1 indicated further gains
were in store for the S&P 500 .SPX . As European markets
opened, London .FTSE was up 0.3% and German DAX .GDAXI rose
0.6%.
"It's another good day for risk and equities have powered
up," said Pepperstone strategist Chris Weston in Melbourne.
"Some talk of fiscal has been in play again, but this has
become tiresome and the markets don't need a reason to rally,
they just don't need to hear negative news. So, in the absence
of any, we see equities flying and U.S. Treasuries offered."
Weston expects more monetary policy stimulus from the U.S.
Federal Reserve before Christmas if the fiscal package comes in
too small or too late. The back and forth on the U.S. fiscal package has unsettled
both the dollar and U.S. Treasuries this week.
Treasury yields US30YT=RR fell on Wednesday on
expectations of a relief package for airlines, small businesses,
and individuals, after President Donald Trump scuppered talks
for a comprehensive coronavirus-related stimulus the previous
session. Meanwhile, new polls show Democratic candidate Joe Biden in
a firm lead against Trump ahead of the November elections.
Investors believe if the Democrats take the White House and both
chambers of Congress then fiscal stimulus will be enacted
without big delays, which would support stocks and the dollar.
Australia's benchmark index .AXJO jumped 1.1% to a
one-month high helped by a larger-than-expected fiscal stimulus
announced in federal budget on Tuesday night.
New Zealand shares .NZ50 rallied on expectations of
further monetary policy easing after the country's central bank
said it was "actively considering" negative interest rates and a
funding-for-lending programme.
Japan's Nikkei .N225 added nearly 1%.
Globally, risk assets have rallied since mid-March on a
flood of central bank and government support for economies
reeling from coronavirus-induced lockdowns the world over.
Expectations of more aggressive easing have further boosted
sentiment.
All eyes will now be on U.S. employment data due later in
the day, which will likely show the recovery in the world's
largest economy losing steam.
Economists predict a decline in jobless claims, however
continued claims are expected to remain firmly above 10 million.
Despite the dour forecasts, Wall Street rallied overnight
with the Dow .DJI up 1.9%, the S&P 500 .SPX gaining 1.7% and
the Nasdaq .IXIC adding 1.88%.
In currencies, the dollar was barely moved against the yen
JPY= at 106. The euro EUR= was unchanged too at $1.1778.
The Australian dollar AUD=D3 was 0.1% weaker at $0.7130.
In commodities, spot gold XAU= was a shade weaker at
$1,886 per ounce.
Oil prices were weaker on higher crude inventories. O/R
Brent crude futures LCOc1 fell 2 cents to $41.97 a barrel,
while U.S. crude CLc1 was down 2 cents to $39.87 a barrel.

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Global assets http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Emerging markets http://tmsnrt.rs/2ihRugV
MSCI All Country Wolrd Index Market Cap http://tmsnrt.rs/2EmTD6j
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