Clinton debate showing lifts stocks but oil weighs

New York - Global stocks got a boost on Tuesday from Democrat Hillary Clinton's strong performance in the first US presidential debate.

Equity markets in Asia finished solidly higher, along with US stocks, which were also buoyed by a surge in consumer confidence.

But gains were partly offset by weakness in petroleum-linked shares due to lower oil prices.

Democrat Clinton is viewed as less of a economic and political wildcard for Wall Street than Republican Donald Trump, and so her success buoyed hopes that she can win in the November election.

"Clinton appeared to edge the first debate which has provided a lift for investors, albeit only a slight one as the polls remain extremely close and the campaign has a long way to go," said Craig Erlam at traders Oanda.

US investors were also cheered by American consumer confidence rising in September to the highest level since the Great Recession, according to the Conference Board.

Shares of retailers Wal-Mart Stores, Macy's and Best Buy all gained 1.0% or more.

But European stocks posted modest declines, weighed down in part by a sharp drop in oil that hit big petroleum producers such as Royal Dutch Shell and BP and France's Total.

The decline in oil prices was sparked by comments from Saudi Arabian and Iranian officials signalling low odds for an agreement in Algeria by major oil producers to limit production.

On Wall Street, the S&P 500 rose 0.6 %, while the Nikkei in Japan climbed 0.8%.

The London stock market ended the day 0.2% lower, Frankfurt was down 0.3% and Paris slid 0.2%.

One of the biggest movers in the foreign exchange market was the Mexican peso, which rallied against the dollar following the US presidential debate.

Trump has vowed a get-tough approach on the US' neighbor to the south, including the building of a massive wall between the two countries that Trump says Mexico will pay for.

The dollar fell to as low as 19.369 pesos, more than 2.3%. Near 22:00 GMT, the dollar was at 19.380 pesos.

"The Mexican peso is particularly sensitive to the election and will likely remain very volatile over the next month or so," said Erlam of Oanda.