By Gina Lee
Investing.com – Asian stocks were mostly up on Monday morning on the back of positive Chinese data, but caution remained ahead of Tuesday’s U.S. presidential debate and the ever-increasing number of COVID-19 cases.
The current COVID-19 outbreak in Europe, and uncertainty over the latest fiscal stimulus measures in the U.S., could see global stocks’ first month of losses since March.
“Clouds have started to gather over the developed world as political uncertainty increases in the U.S. and Europe grapples with a resurgence in COVID-19 cases,” J.P. Morgan Asset Management global market strategist Kerry Craig told Reuters.
However, U.S. House Speaker Nancy Pelosi said on Sunday she thinks a deal can be reached over the package and that talks were continuing.
“We are having our conversations. And when I have a conversation with the administration, it is in good faith … I trust (Treasury) Secretary (Steve) Mnuchin to represent something that can reach a solution. And I believe we can come to an agreement,” she said.
In China, Sunday’s data showed an increase in profits at industrial companies for the fourth consecutive month in August, with Chinese industrial profit up 19.10% year-on-year.
“The data augurs well for the China growth story,” AxiCorp global markets strategist Stephen Innes told Bloomberg.
However, with the figure down from July’s growth of 19.60%, investors are looking to the release of the country’s manufacturing and non-manufacturing Purchasing Managers Indexes (PMIs), as well as the Caixin manufacturing PMI, on Wednesday for more clues on the Chinese recovery from COVID-19.
China’s Shanghai Composite inched down 0.05% by 11:08 PM ET (3:08 AM GMT) and the Shenzhen Component edged down 0.19%, with both benchmarks reversing earlier gains.
Meanwhile, investors continue to monitor Oracle’s acquisition of TikTok’s U.S. operations after U.S. District Judge Carl Nichols temporarily blocked U.S. President Donald Trump’s ban on the app that was due to come into force on Sunday. But Nichols declined “at this time” to block additional Commerce Department restrictions, due to take effect on Nov. 12, that would make the app impossible to use in the U.S.
Hong Kong’s Hang Seng Index was up 0.37%.
Japan’s Nikkei 225 gained 0.71%. South Korea’s KOSPI jumped 1.37%, with the Korea Disease Control and Prevention Agency (KDCA) reporting 50 new COVID-19 cases on Monday, the lowest since Aug. 11.
In Australia, the ASX 200 inched up 0.09%. Victoria state reported a fall in the daily number of COVID-19 cases to single digits, and the state began easing some restrictions, including lifting a night curfew, on Sunday.