NEW YORK, Oct 8 ― Asian shares were set to track Wall Street gains today, as renewed hopes for more US stimulus helped restore investor confidence in the New York session.

US President Donald Trump sent a flurry of late night tweets yesterday urging Congress to pass piece-meal aid packages for targeted industries, small business and consumers, backing off his earlier stance to unilaterally end negotiations.

Markets are also starting to price in a Democratic sweep during the US election in November as new polls show former Vice President Joe Biden with a firm lead. Investors see such an outcome making the passage of a new stimulus bill more likely.

“Even if there was no slimmed down stimulus package, there is a greater chance of a larger stimulus package later,” National Australia Bank analyst Tapas Strickland said of a potential Biden victory.

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The Dow Jones Industrial Average rose 1.91 per cent, the S&P 500 gained 1.74 per cent and the Nasdaq Composite added 1.88 per cent.

MSCI's gauge of stocks across the globe gained 1.05 per cent.

Gains in Asian futures were more muted ahead of a US employment data release that's expected to show the recovery in the world's largest economy losing steam. Economists forecast a decline in jobless claims however, continued claims are expected to remain firmly above 10 million.

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Many members of the Federal Open Market Committee said their economic outlook assumed additional fiscal support, according to US Federal Reserve minutes released yesterday. Central bank officials believe if aid packages are too small or too late, the economy is in for a weak recovery.

E-mini futures for the S&P 500 rose 0.07 per cent. Australian S&P/ASX 200 futures rose 0.42 per cent in early Asia trade.

Japan's Nikkei 225 futures added 0.08 per cent. Hong Kong's Hang Seng index futures rose 0.29 per cent.

Fresh stimulus hopes prompted a rally in gold and tamped safe-haven demand for US Treasuries and the dollar.

Spot gold rose 0.5 per cent to US$1,887.05 (RM7,844.06) per ounce but US gold futures settled down 0.9 per cent.

Yesterday, U.S. 10-year yields rose to 0.786 per cent from 0.74 per cent late on Tuesday. Yields on US 30-year bonds were at 1.593 per cent, up from 1.537 per cent the previous session.

The dollar index fell 0.19 per cent against a basket of major currencies to 93.64.

In energy markets, oil prices dropped due to a larger-than-expected increase in inventories.

Brent crude futures fell 66 cents, or 1.6 per cent, to settle at US$41.99 a barrel, while US West Texas Intermediate (WTI) crude fell 72 cents, or 1.8 per cent, to settle at US$39.95 a barrel. ― Reuters