* Asian stock markets : https://tmsnrt.rs/2zpUAr4
* Asian ex-Japan shares gain led by China; Nikkei rises too
* Oil prices lower on rising virus cases
* Investors jittery ahead of U.S. presidential debate on Tues
By Swati Pandey
SYDNEY, Sept 28 (Reuters) - Chinese stocks drove Asian markets higher on Monday, though sentiment was still cautious ahead of a U.S. Presidential debate and as a spike in new coronavirus cases undermined global economic recovery hopes.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS advanced 0.5% to 550.47, but still within striking distance of a two-month low of 543.66 hit last week.
The index is set to end the month deep in the red after three straight monthly gains as the pandemic continues to wreak economic havoc around the world and raises investor anxiety about sky-high valuations.
Chinese shares opened higher and helped to underpin Asian markets after a tentative start, with the blue-chip CSI 300 index .CSI300 up 0.85%. Shanghai's SSE (LON:SSE) .SSEC climbed 0.5%.
Encouragingly, data over the weekend showed profits at China's industrial firms grew for the fourth straight month in August buoyed in part by a rebound in commodities prices and equipment manufacturing. Japan's Nikkei .N225 was 0.75% higher, partly on a lower yen, while South Korea's KOSPI index .KS11 gained 1.1%.
Australia's main share index .AXJO reversed early losses to edge up, led by positive news on the coronavirus front with new infections in the country's second-most populous state of Victoria down sharply and allowing authorities to ease some of the mobility restrictions. broad gains in Asia follow a Wall Street rally on Friday though analysts expect the gains to be short-lived as expectations for economic growth start to falter.
Particularly worrying is a resurgence of COVID-19 cases in Europe, dousing earlier hopes that authorities might have started to exert some control on the outbreak and raising further strains on businesses already grappling with losses.
"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," Kerry Craig, Global Market Strategist, J.P. Morgan Asset Management.
COVID-19 cases are edging closer to 33 million around the globe with 992,470 reportedly dead with Europe seeing a surge in new infections. governments are loathe to re-introduce nationwide lockdowns, localised and sector based restrictions may last for some time, restraining economic activity," Craig added.
Investor focus will next be on the first debate between U.S. President Donald Trump and rival Joe Biden on Tuesday ahead of the November election.
A strong performance in Tuesday's debate by Biden, who currently has a modest lead in betting odds and polls, might boost stocks related to global trade and renewable energy, while a perceived victory by Trump could benefit fossil fuel and defense companies. focus will also be on progress on a new fiscal support package in the United States while investors will be closely watching UK-Europe post-Brexit trade talks as they continue this week.
In currencies, the dollar eased from a near a two-week high against the Japanese yen JPY= to 105.44.
The euro EUR= was last at $1.1628, not far from a two-month trough of $.1611 touched on Friday.
The British pound GBP rose 0.1% to $1.2760.
The risk sensitive Australian dollar AUD=D3 was slightly firmer at $0.7052 after falling for six consecutive sessions as odds narrowed over the prospect of further monetary policy easing in the country. commodities, oil prices came under pressure as renewed mobility curbs in various countries to contain a resurgence of coronavirus cases cloud the outlook on fuel demand recovery.
U.S. Brent crude LCOc1 slipped 18 cents to $41.74 a barrel while U.S. light crude CLc1 was down 19 cents at $40.06. O/R
Gold XAU= was a shade higher at $1,861.8, still some way off an all-time peak of above $2,000 an ounce touched in August. GOL/
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