Reuters - Asia share indexes rose Monday as a result of hopes of a U.S cash package and expectations of a coronavirus vaccine by the end of this year - though weaker-than-expected China data kept buyers in check.
MSCI's broadest index of Asia-Pacific shares outside of Japan climbed 0.6% for its second consecutive trading day of gains - but in retreat a little following third quarter gross domestic product data from China.
The index has risen in eight of the past 10 sessions thanks to a rally in risk assets buoyed by hopes of a coronavirus vaccine and expectations of a "blue wave" - which would see the Democrats claim victory in November's elections.
China shares indexes started higher - though the blue chip index shaved off some gains after China's gross domestic product data missed forecasts. Separate monthly indicators pointed to an expansion in economic activity, however.
China's gross domestic product grew 4.9% in July-September from a year earlier - slower than the median forecast of 5.2%.
Monthly indicators beat forecasts: Industrial output accelerated 6.9% in September from a year earlier, when analysts were looking for a 5.8% gain from a 5.6% rise in August. Retail sales edged up 3.3% last month from a year earlier against expectations for 1.8% growth.
"The rebound in third quarter gross domestic product was less strong than expected, but was still a decent 4.9% year over year. September data beat expectations, suggesting a pickup in momentum toward the latter part of the third quarter," Westpac in Singapore macro strategy for Asia Frances Cheung said.
"The pickup in momentum was broad-based, which bodes well for the fourth quarter outlook."
Japan's Nikkei and Australia's benchmark index were each up 1.1%.
Boosting overall sentiment, drugmaker Pfizer, Inc. said Friday it could have a coronavirus vaccine ready in the United States by the end of this year.
E-Mini futures for the S&P 500 rose 0.6% in Asia trade after U.S. House Speaker Nancy Pelosi said Sunday she was optimistic legislation on a wide-ranging coronavirus relief package might be pushed through before the election.
But with her negotiating partner, Treasury Secretary Steven Mnuchin, in the Middle East until Tuesday, such a timeframe would seem to be overly optimistic, analysts said.
Investors are concerned about rising coronavirus cases to help curb the spread of the disease. World coronavirus cases rose by more than 400,000 for the first time late Friday - a record one-day increase as much of Europe enacts new restrictions to curb the outbreak.
Later this week, risk events include minutes of Australia's central bank meeting, the final U.S. presidential debate and world manufacturing indicators.
Action in currencies was quiet with the U.S. dollar, usually perceived as a safe-haven asset, even at 93.696 against its basket of six comparative currencies. The euro was weaker at $1.1712.
Sterling was higher - though it was still near two-week lows after UK Prime Minister Boris Johnson told businesses to get ready for a no-deal Brexit in case negotiations with the European Union failed to produce a free trade agreement.
"EU-UK trade talks are flirting with collapse," ANZ economists said. "UK Prime Minister Johnson said the UK needs to prepare for a no-deal outcome, as both sides cannot agree on a Canada-style FTA. Talks resume in London on Monday - but without the political willingness to shift ground, there is little the negotiators can achieve."
In commodities, Brent crude futures slipped 14 cents to $42.79 a barrel and U.S. West Texas Intermediate crude futures fell 14 cents to $40.74 a barrel. Spot gold was a shade firmer at $1,900.8 an ounce.
