* No clear winner in chaotic Trump-Biden debate
* Uncertainty about election outcome sinks S&P 500 futures,
AUD
* China stocks boosted by PMI data
* Asian stock markets: https://tmsnrt.rs/2zpUAr4
By Tom Westbrook and Scott Murdoch
SINGAPORE/HONG KONG, Sept 30 (Reuters) - U.S. equity futures
fell and safer assets like the yen and dollar found buyers on
Wednesday after a chaotic first U.S. presidential debate turned
investors cautious, though strong factory surveys gave a boost
to Chinese shares.
President Donald Trump and Democratic rival Joe Biden
sparred over Trump's leadership on the coronavirus pandemic, the
economy and the integrity of November's election in exchanges
marked by Trump's repeated interruptions. U.S. stock futures ground higher in Asian time during the
debate but then retreated after Trump cast doubt on whether he
would accept the election's outcome.
S&P 500 futures ESc1 were last 0.6% lower, with Dow Jones
YMc1 and Nasdaq 100 NQc1 futures down by as much as 1%.
European markets looked set to follow, with FTSE futures
FFIc1 falling 0.4% and Euro STOXX 50 futures STXEc1 down
0.6%.
The U.S. dollar crept higher and is set for its best monthly
gain since July 2019, while the yen rose 0.2% to 105.50 per
dollar, its strongest daily rise in nearly two weeks. FRX/
"The share market normally prefers the incumbent (president)
to win," said Shane Oliver, head of investment strategy at AMP
Capital in Sydney. "U.S. futures initially rose, as perhaps
Trump delivered some punches, but it wasn't enough," he said.
"Investors have gone back to worrying about a contested
election, a delay in the outcome and whether Trump will go
peacefully if he loses."
Markets in Asia, most of which are headed for their worst
month since March, either deepened losses or pulled back from
highs made after data showed China's economic recovery remains
on track.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS rose 0.2%, led by a 1.2% gain in Hong Kong
.HSI . Japan's Nikkei .N225 fell 1% and Australia's S&P/ASX
200 .AXJO fell nearly 2%. .HK .T .AX
Chinese property developers gained, led by a 15% jump in
Evergrande 3333.HK shares after the heavily-indebted giant
reached a deal to ease cash crunch concerns. China's factory activity expanded at a faster pace in
September, helped by rising export orders. The official manufacturing Purchasing Manager's Index (PMI)
rose to 51.5 in September from 51.0 in August. Analysts had
expected it to pick up slightly to 51.2.
CONTESTED RESULT
The presidential debate yielded no clear winner and barely
moved the needle in betting markets, which project a narrow
Biden victory. Odds maker Smarkets slightly lowered Trump's
chance of re-election to 40% after the debate, compared with 42%
beforehand.
But as the election draws closer, investors are increasingly
expecting a bumpy final lap and are bracing for the possibility
that the result is unclear on polling day.
Options trade points to a volatile November. Two-month
dollar/yen volatility JPY2MO= , a gauge of expected moves in
the yen, is elevated, and its premium over one-month volatility
JPY1MO= is near record levels.
On Wednesday major currencies slipped a tad on the dollar
after the debate, knocking the euro EUR= from a one-week high
to $1.1736. The risk-sensitive Australian dollar AUD=D3 fell
0.2% to $0.7118 and is headed for its worst month since March.
Biden said in the closing stages of the debate that he would
accept defeat if he lost at the ballot box and would not claim
victory prematurely.
Trump, who has refused to commit to a peaceful transfer of
power if he loses the election, repeated unfounded allegations
that mail-in voting would lead to fraud.
"I don't think we were expecting anything else from Trump,"
said Chris Weston, head of research at Melbourne brokerage
Pepperstone. "He continues to put that contested (result) risk
premium back into the market."
Elsewhere, oil prices fell amid rising concerns about fuel
demand as the coronavirus pandemic worsens. O/R
Brent crude futures LCOc1 were last down 0.9% at $40.66 a
barrel and U.S. crude futures CLc1 were down 0.7% at $39.00 a
barrel. Gold XAU= slipped 0.4% to 1,890 an ounce.
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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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(Reporting Tom Westbrook in Singapore and Scott Murdoch in Hong
Kong. Additional reporting by Stanley White in Tokyo and Pete
Schroeder in Washington.
Editing by Shri Navaratnam, Simon Cameron-Moore and Kim Coghill)