Asian shares boosted by more powerful China factory data

Asian shares were mostly higher on Monday buoyed by further signs of recovery in China's manufacturing sector.

Japan's benchmark Nikkei 225 surged 1.4% to 23,295.48, while South Korea's Kospi gained 1.4% to 2,299.72. Australia's S&P/ASX 200 added 0.4% to 5,951.30. Hong Kong's Hang Seng jumped 1.2% to 24,386.10, while the Shanghai Composite inched significantly less than 0.1% lower to 3,222.77.

Shares slipped 0.1% in India but were higher in Taiwan and Southeast Asia.

The Caixin manufacturing PMI, a major indicator for China's manufacturing sector, rose in October, showing that domestic demand is supporting, reports said over the weekend.

But if coronavirus cases continue to rise in the U.S. and Europe, that's more likely to hurt China's exports. The resurgence of outbreaks of COVID-19 has investors worried, along with uncertainty over the U.S. presidential election.

The U.S. government’s top infectious diseases expert has cautioned that the U.S. will have to deal with “a lot of hurt” in the weeks ahead because of surging coronavirus cases. Dr. Anthony Fauci said in a Washington Post interview that the U.S. “could not possibly be positioned more poorly” to stem rising cases as more people gather indoors through the colder fall and winter season.

Apart from pandemic and election concerns, market players want ahead to a slew of earnings reports expected from Japan and all of those other region, including automakers and video-game maker Nintendo Co.

“With voters in the U.S. likely to the polls this week, or more accurately, not going to the polls, having already cast their postal votes in huge numbers, Asia will be looking nervously westwards this week, wondering what the outcome will be, and that it will mean for them,” said Robert Carnell, regional head of research for ING.

The focus is on U.S. China relations, but investors aren't sure what change either outcome might bring about that issue. Although Democratic prospect Joseph Biden might go easier on tariffs, say he is unlikely to soften U.S. policy on other issues such as human rights, Carnell said in a written report.

The other day proved punishing for Wall Street, with the S&P 500 posting its first back-to-back monthly loss since the coronavirus pandemic first gripped the economy in March.

Investors have been cashing in gains from the recovery previously several months, moving to secure profits prior to the election.

The S&P 500 dropped 1.2% to 3,269.96, ending the week with a 5.6% loss, its worst in seven months. Sharp drops in big technology stocks drove a lot of the selling, reflecting worries that expectations built too much for a few of the market's biggest stars, including Apple and Amazon.

The Dow Jones Industrial Average fell 0.6% to 26,501.60. The Nasdaq composite quit 2.5% to 10,911.59.

In energy trading on Monday, benchmark U.S. crude slipped $1.50 to $34.29 a barrel in electronic trading on the brand new York Mercantile Exchange. It lost 38 cents to $35.79 per barrel on Friday. Brent crude, the international standard, fell $1.44 to $36.50 a barrel.

The U.S. dollar inched up to 104.73 Japanese yen from 104.66 yen. The euro cost $1.1637, down slightly from $1.1648.