Asia shares up ahead of China holiday, presidential debate

TOKYO (AP) — Asian shares were mostly higher in muted trading Monday, ahead of the first U.S. presidential debate and a national holiday in China later in the week.

Japan's benchmark Nikkei 225 rose 0.7% to 23,371.70, while South Korea's Kospi added 1.5% to 2,312.96. Australia's S&P/ASX 200 gained nearly 0.2% to 5,973.70. Hong Kong's Hang Seng rose 0.5% to 23,349.80, while the Shanghai Composite index was little changed at 3,217.87.

China is celebrating Mid-Autumn Day Oct. 1, followed by a weeklong holiday through Oct. 8.

China's statistical bureau reported Sunday that industrial profits rose 19% in August from a year earlier, as the economy recovered from the pandemic downturn.

Regional markets are seeing signs of improvement in economic activity despite the coronavirus pandemic, as businesses strive to achieve a new normal with social distancing and mask-wearing.

Investors are hoping for additional fiscal stimulus measures from the U.S. House Speaker Nancy Pelosi has said she hopes to find common ground for agreement with Treasury Secretary Stephen Mnuchin after the $2.4 trillion package under discussion failed to bridge the divide.

The chamber passed a $3.4 trillion rescue measure in May. Democrats cut their ambitions back by $1 trillion or so, while Senate Republicans have focused on a much smaller package in the $650 billion to $1 trillion range.

Bridging the overall topline gulf would be tough. Working out hundreds of legislative details just before the November election, amid a feud over filling Justice Ruth Bader Ginsburg’s seat on the Supreme Court could be impossible. But there is pressure on both sides to do something to help the economy and the tens of millions of voters left unemployed thanks to the pandemic.

Also on investors' minds is the first...