In This Article:
* Asian stock markets : https://tmsnrt.rs/2zpUAr4
* Shanghai shares enjoying best day in three years
* Nikkei moves higher, having been down over 1 pct
* Market awaiting rush of U.S. earnings reports
* Saudi Arabia, Italy, Brexit keep geopolitics in focus
By Wayne Cole
SYDNEY, Oct 22 (Reuters) - Asian share markets swung into the black on Monday as the promise of more stimulus boosted Chinese stocks for a second session and helped offset geopolitical concerns over Saudi Arabia, Italy and Brexit.
China's tax cuts next year could be worth more than 1 percent of gross domestic product (GDP), a central bank adviser said in remarks published on Monday, in a sign policymakers might be considering another round of reductions.
The government also published a draft version of new rules for tax deductions available to individuals.
Blue chips in Shanghai jumped 4.8 percent in the largest daily gain in three years, adding to Friday's bounce on Beijing's pledge of support for the economy and companies.
That helped E-Mini futures for the S&P 500 recoup all their initial losses to push 0.2 percent higher. MSCI's broadest index of Asia-Pacific shares outside Japan turned on a dime to rise 1 percent.
Japan's Nikkei moved up 0.4 percent, after being down more than 1 percent earlier, while South Korean stocks were flat.
Spreadbetters tipped opening gains for European bourses.
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.