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  • Asian shares take a U-turn from one-month low as recent data from China, Japan and Pacific nations came in positive.
  • Brexit headlines battle virus woes ahead of the key US presidential election.
  • Risk remains mixed amid hopes of a blue wave.

Equities in Asia-Pacific recover ahead of the European session, with the shares from Japan and South Korea be the biggest gainers, on Monday. Following the footsteps of China’s NBS Manufacturing PMI, published over the weekend, economic numbers from Japan, South Korea, Australia and New Zealand also flashed welcome readings for October. Also pleasing the buyers are upbeat news from the Brexit table that suggests the solution to the key hurdle, fisheries.

As a result, MSCI’s index of Asia-Pacific shares outside Japan gains half a percent while Japan’s Nikkei 225 becomes the regional leader with over 1.35% profits to 23,292 by press time.

Further, stocks in China also cheer welcome prints of China’s sixth month of expansion in manufacturing activities, as suggested by Caixin Manufacturing PMI, whereas Australia’s ASX 200 and NZX 50 also print mild gains at the time of writing. Australian AiG Performance of Mfg Index, Commonwealth Bank Manufacturing PMI and Building Permits joined New Zealand’s Building Permits to decorate the economic calendar.

South Korea’s KOSPI becomes the second-biggest gainer even as the Bank of Korea (BOK) signals market intervention. The reason could be traced from South Korean Nikkei Markit Manufacturing PMI that crossed the 50.00 mark for the first time in 2020. Moving on, Hong Kong’s Hang Seng and India’s BSE Sensex offer gains of around 0.30% but Indonesia’s IDX Composite struggle for a clear direction below 5,130.

Not only the Asian shares but S&P 500 Futures and the US treasury yields are also positive amid cautious optimism that the blue wave, Democratic victory in both the houses of the US, will unleash heavy money flow. The latest updates from fivethirtyeight.com suggest that the race for the American is very tight.

Read: 2020 Elections: Three states traders should watch, plus places that could provide surprises

Other than the US elections, the month-start activity numbers and the RBA can also entertain global markets. Though, fears of a wider wave of the coronavirus (COVID-19) resurgence may challenge the optimists.