STOCK MARKET - SINGAPORE. Asian shares got off to a strong start on Tuesday, with investors buoyed by strong factory output data from major economies, while the dollar and gold held ground on political uncertainty ahead of U.S. elections.
President Donald Trump and Democratic rival Joe Biden made a last-ditch push for votes in battleground states as their campaigns prepared for post-election disputes that could prolong a divisive presidential election.
U.S. stock futures traded higher, even though many market participants expect short-term volatility, especially after a jittery week. S&P 500 futures rose 0.5%, EUROSTOXX 50 futures gained 1% and FTSE futures put on 0.9%.
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Strategists at Blackrock Investment Institute said polls were suggesting 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,” the strategists said in a report.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS added 1%, up for the second straight day. The gauge is just 1% shy of a 2-1/2 year high struck in mid-October and up 5% so far this year.
South Korea's main index .KSII advanced 1.7%, markets in Hong Kong .HSI and Sydney .AXJO rose 2% and Chinese blue chips .CSI300 put on 0.8%. Japanese 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.”
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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 Chinese factory activity expanded the fastest in a decade and euro zone manufacturing also sped up.
