* Global stocks little impressed by U.S. debate
* Hopes of stimulus deal support risk assets
* U.S. debt yields at 4 1/2-month high on spending worries
* Asian stock markets: https://tmsnrt.rs/2zpUAr4
By Hideyuki Sano
TOKYO, Oct 23 (Reuters) - Global stocks barely budged on
Friday as investors tightened positions with less than two weeks
to go before the U.S. presidential election and awaited a
breakthrough in stimulus talks in Washington.
The final debate between U.S. President Donald Trump and his
Democrat challenger Joe Biden on Thursday presented few
surprises for election watchers but slightly reinforced investor
caution heading into the Nov. 3 poll. U.S. S&P 500 futures ESc1 had dipped slightly after the
debate but were mostly flat by midday trade. The underlying
index had gained about 0.5% in the previous day on hopes that
the U.S. Congress and the White House could soon strike a deal
on another round of COVID-19 stimulus.
Shares in Asia hardly budged, with MSCI's broadest index of
Asia-Pacific shares outside Japan .MIAPJ0000PUS flat while
Japan's Nikkei .N225 ticked up 0.2%.
The CSI300 index of mainland China .CSI300 also edged up
0.2%.
At Thursday's debate, Biden renewed his criticism of Trump's
handling of the coronavirus pandemic as Trump levelled unfounded
corruption accusations at Biden and his family. "I don't think there's anything new in it, I think that's
why the market is not moving much. The focus is still on the
timing of the fiscal stimulus and how big it is," said Moh Siong
Sim, FX analyst at Bank of Singapore.
On Thursday, U.S. House of Representatives Speaker Nancy
Pelosi reported progress in talks with the Trump administration
for another round of financial aid, saying legislation could be
hammered out "pretty soon". While the news helped to lift U.S. share prices, the U.S.
S&P500 .SPX is still down 0.9% so far this week amid
uncertainties over stimulus and the election.
A widening lead in polls by Biden is prompting many
investors to bet on a Biden presidency and also a "blue sweep",
where Democrats win the both chambers of Congress.
"A blue wave may lead to concerns about the impact on the
tech sector, while a Biden win and a split Congress may imply
another four years of limited policy changes and politicking,"
said Mary Nicola, senior economist at Pinebridge Investments in
Singapore.
Reflecting concerns Democrats could take a harder stance on
big tech firms, the Nasdaq index .IXIC , which had led the
market's rally, has underperformed lately, having lost 1.4% so
far this week.
Expectations of bigger government stimulus have also boosted
U.S. borrowing costs.
The 10-year U.S. Treasuries yield US10YT=RR rose to 4
1/2-month high of 0.870% on Thursday and last stood at 0.853%.
U.S. economic data published on Thursday surprised to the
upside, as jobless claims fell more than expected and existing
home sales exceeded estimates to more than a 14-year high.
In the currency market, the dollar bounced back from
Wednesday's seven-week low but stayed under pressure as
investors began to wager on a Biden presidency and big U.S.
stimulus.
The euro traded at $1.1803 EUR= , down 0.2% and off
Wednesday's high of $1.1805 but still up 0.7% on the week.
The yen changed hands at 104.77 yen per dollar JPY= ,
stepping back a tad after its biggest gain in nearly two months
on Wednesday.
The Chinese yuan stood at 6.6729 per dollar in offshore
trade CNH= , off 27-month high of 6.6278 touched on Wednesday.
Oil prices were supported by hopes on U.S. stimulus and the
prospect of extended output cuts. O/R
Brent futures LCOc1 ticked up 0.3% to $42.59 per barrel
while U.S. crude futures CLc1 rose 0.25% to $40.74 per barrel.