Reuters - Asia share indexes started strongly Tuesday with market participants upbeat about healthy factory output data from large economies. The dollar and gold held ground on political uncertainty ahead of U.S. elections.

President Donald Trump and Democratic candidate Joe Biden made last-ditch pushes for votes in battleground states as their campaigns prepared for postelection disputes that could prolong a divisive presidential election.

U.S. stock futures traded higher - even though many market participants expect short-term volatility after a jittery week. S&P 500 futures rose 0.5%, Eurostoxx 50 futures gained 1% and FTSE futures put on 0.9%.

Blackrock Investment Institute said polls suggested a greater likelihood of a Democratic sweep in the election. "We are starting to incorporate themes we believe would outperform in that event - moving toward a more pro-risk stance overall despite last week's market pullback," it said.

MSCI's broadest index of Asia-Pacific shares outside Japan added 1% - up for the second consecutive day. It is up 5% so far this year.

South Korea's main index advanced 1.7%, markets in Hong Kong and Sydney rose 2% and China's blue chips put on 0.8%. Japan markets were closed for a holiday.

"We are upgrading Asia ex-Japan equities and Asia fixed income to overweight as China and other Asian economies have done a better job of containing COVID-19 and are further ahead in the economic restart," BlackRock Investment Institute said. "We expect this dynamic to continue over the months ahead."

Data showed economic activity was improving across the board. U.S. manufacturing activity accelerated more than expected in October with new orders jumping to their highest in nearly 17 years while China factory activity expanded the fastest in a decade and eurozone manufacturing also sped up.

Analysts said the prospect of no immediate winner in the presidential race was the biggest drag on markets. Trump trails Biden in national opinion polls but polls in the swing states that will decide the election show a closer race.

"The key for the stock market in the short term is a concern over an uncertain and timely election result and the possibility of a disputed outcome," said Marc Chaikin, founder of Chaikin Analytics, a quantitative investment research company based in Philadelphia.

Australia's ASX 200 gained the most in three weeks ahead of an anticipated cut in the benchmark interest rate by the country's central bank.

Oil prices steadied after two weeks of selling with Brent futures down 0.1% to $38.90 a barrel but hanging on to most of an overnight bounce.

Still, the uncertainty of the U.S. election and a resurgence in COVID-19 cases in Europe and the U.S. supported the dollar and gold prices as some market participants sought safety.

Gold was firm at $1,895.6 an ounce while the dollar index held ground at 94.027.

U.S. Treasury yields were little changed as market participants braced for central bank meetings by the Reserve Bank of Australia, the Federal Reserve and Bank of England, as well as the release of U.S. jobs data for October.