* MSCI ex-Japan down for third day in a row

* MSCI ex-Japan set for 1st weekly loss since late-Sept

* Eyes on U.S. presidential election, rising COVID instances

By Swati Pandey

SYDNEY, Oct 30 (Reuters) – A gauge of Asian shares fell for a 3rd straight session on Friday as jitters over upcoming U.S. presidential elections and fears that the worldwide financial downturn will persist enveloped markets, although the index was nonetheless set to finish the month greater.

MSCI’s broadest index of Asia-Pacific shares exterior of Japan was final down 0.3%, on observe to the tip the week 1.3% decrease after 4 straight weeks of features.

The index is up 3.7% in October to date. Analysts anticipate this broader outperformance to increase additional.

“For a disaster of this scale, Asian equities have carried out remarkably effectively,” Citi analysts wrote in a observe.

“Throughout the area, markets with a better weighting of expertise shares or the place the restoration has develop into extra entrenched have outperformed,” they added. “This stable efficiency can proceed, in our view. Valuations are affordable for an early stage of a restoration whereas liquidity is beneficiant. There has additionally been a perceptible drop in volatility in latest months.”

The temper on Friday was much less constructive, although. Australia’s ASX 200 fell 0.2% and New Zealand’s benchmark index faltered 0.6%. Japan’s Nikkei slipped 0.8% as did South Korea’s KOSPI index.

Chinese language shares had been marginally greater, with the blue-chip index up 0.07%.

E-Mini futures for S&P500 stumbled 0.9% in early Asian buying and selling, a sign Wall Avenue would open within the pink later within the day.

Report numbers of coronavirus instances worldwide and the Nov. Three U.S. presidential election remained the most important components looming forward for buyers. On Wednesday, international coronavirus instances rose by over 500,000 for the primary time as France and Germany prepped contemporary lockdowns.

The falls in Asia occurred regardless of a stable session on Wall Avenue in a single day, which was helped by a weight loss plan of sturdy quarterly studies from tech giants and knowledge displaying the U.S. economic system grew at a historic annualised tempo of 33.1% within the third quarter.

Google mother or father Alphabet, Amazon.com Inc, Apple Inc and Fb Inc all beat analyst estimates for quarterly income, with Amazon reporting a second straight quarter of report income.

The Dow Jones Industrial Common closed up 0.52%. The S&P 500 gained 1.19% and the Nasdaq Composite added 1.64%.

“Even with the rebound, U.S. output stays 3.5% under its pre-COVID ranges. The trail in the direction of restoration is way much less clear from right here, particularly because the variety of virus instances grows and there are near-term impediments to a fiscal deal,” wrote ANZ analysts in a observe.

The European Central Financial institution dedicated to additional motion in December to additional lend financial assist as European nations grappled with a renewed coronavirus outbreak.

Analysts anticipate an growth and extension of the ECB’s Pandemic Emergency Buy Programme, a decrease deposit facility price, and much more beneficiant lending phrases for banks in December.

The announcement despatched the euro sliding to a four-week low of $0.1648 to be final at $1.1678.

The greenback was weaker in opposition to the Japanese yen at 104.46 whereas the risk-sensitive Australian greenback rose 0.3% to $0.7050.

In commodities, oil picked up after hitting a five-month low on Thursday, with Brent crude futures up 9 cents at $37.74 a barrel and U.S. crude including 11 cents at $36.28.

Gold rose, with spot costs climbing 0.2% to $1,870.9 an oz..

(Reporting by Swati Pandey in Sydney and Pete Schroeder in New York; Enhancing by Tom Brown and Gerry Doyle)