* 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. L3N1X21FI
The government also published a draft version of new rules for tax deductions available to individuals. chips in Shanghai .CSI300 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 ESc1 recoup all their initial losses to push 0.2 percent higher. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS turned on a dime to rise 1 percent.
Japan's Nikkei .N225 moved up 0.4 percent, after being down more than 1 percent earlier, while South Korean stocks .KS11 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 (NASDAQ:AMZN), Alphabet (NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT) and Caterpillar (NYSE:CAT). 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 (NYSE:JPM) 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. 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. 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.
ITALIAN COUNTDOWN
In Europe, Italy has until Monday to explain to the Commission its breach of rules and faces the rejection of its budget, which may eventually lead to sanctions. Italian government expects the European Commission to decide for the first time ever on Tuesday to ask a member state to revise its draft budget, a government source said on Sunday.
Italian bond yields hit their highest level since early 2014 on Friday and the premium investors demand in comparison to German debt is at a five and a half year high.
Italy is expected to be on the agenda when the European Central Bank meets on Thursday. The bank is considered certain to keep policy on hold and likely put off discussion about its reinvestment policy until December. euro started the week steady at $1.1511 EUR= having bounced from support at $1.1431 on Friday. The dollar recovered from an early dip on the yen to stand at 112.59 JPY=D3 and it was little changed against a basket of currencies at 95.676 .DXY . USD/
Sterling idled at $1.3067 GBP= as the market waited for more developments on Brexit.
Prime Minister Theresa May will tell parliament on Monday that 95 percent of Britain's divorce deal has now been settled but will repeat her opposition to the European Union's proposal for the land border with Northern Ireland. commodity markets, gold held steady at $1,227.33 an ounce XAU= .
Oil prices were stable on Monday, supported by supply concerns ahead of the start of U.S. sanctions against Iran's crude exports, but held back by rising drilling activity in the United States. O/N
Brent crude LCOc1 added 23 cents to $60.01 a barrel, while U.S. crude rose 26 cents to $69.38 CLc1 .
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^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Editing by Shri Navaratnam and Richard Borsuk)