In This Article:
* Asian stock markets : https://tmsnrt.rs/2zpUAr4
* Nikkei falls 1 pct, leads more losses in Asia
* Market anxious ahead of rush of U.S. earnings
* Saudi Arabia, Italy, Brexit keeps geopolitics in focus
By Wayne Cole
SYDNEY, Oct 22 (Reuters) - Asian share markets pared early losses on Monday as Chinese stocks swung higher for a second session and helped offset geopolitical concerns over Saudi Arabia, Italy and Brexit.
Blue chips in Shanghai climbed 3.5 percent in early trade there, extending Friday's bounce on Beijing's pledge of support for the economy and companies.
That helped E-Mini futures for the S&P 500 halve their initial loss to be down 0.25 percent. MSCI's broadest index of Asia-Pacific shares outside Japan turned around to edge up 0.2 percent.
Japan's Nikkei was off 0.2 percent, after being down over 1 percent earlier, as were South Korean stocks.
This week is the peak period of the U.S. earnings season and companies reporting include Amazon, Alphabet, Microsoft and Caterpillar.
Helped by a strong economy and deep corporate tax cuts, S&P 500 earnings per share are expected to grow 22 percent in the third quarter, according to I/B/E/S data from Refinitiv.
"The season on an absolute basis will likely wind up being 'strong' and the vast majority of companies will exceed consensus expectations," said analysts at JPMorgan in a note.
"However, headwinds are building at the margin in the form of U.S. dollar strength, supply chain disruptions owing to all the trade uncertainty, and rising costs. Even the mere hint of a turn in profit fundamentals would have severe ramifications." The outlook for global growth in 2019 has dimmed for the first time, according to Reuters polls of economists who cautioned that the U.S.-China trade war and tightening financial conditions would trigger the next downturn.
Saudi Arabia remained in the spotlight as Riyadh on Sunday called the killing of journalist Jamal Khashoggi a "huge and grave mistake," but sought to shield its powerful crown prince from the widening crisis.
On Saturday, U.S. President Donald Trump joined European leaders in pushing Saudi Arabia for more answers after Riyadh acknowledged that the journalist died at the consulate following weeks of denial.
ITALIAN COUNTDOWN
In Europe, Italy has until Monday to explain to the Commission its breach of rules and faces the rejection of its budget, which may eventually lead to sanctions.
The Italian government expects the European Commission to decide for the first time ever on Tuesday to ask a member state to revise its draft budget, a government source said on Sunday.