SYDNEY (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.
(Graphic: Asian stock markets - tmsnrt.rs/2zpUAr4)
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.
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