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CORRECTED-GLOBAL MARKETS-Asian shares open higher following stellar month of gains

Published 01/12/2020, 12:59 pm
Updated 01/12/2020, 02:00 pm
© Reuters.
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(Corrects to China's index, not futures, in paragraph 3)

By Paulina Duran and Jessica DiNapoli

SYDNEY/NEW YORK, Dec 1 (Reuters) - Asian share markets opened slightly higher on Tuesday buoyed by the prospect of a COVID-19 vaccine, reversing the previous day's dips as investors took profits at the end of a record-breaking month.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS added 0.26% on Tuesday after closing the month 9% higher, the best November since 2001. Japan's Nikkei .N225 and Australia's S&P/ASX 200 .AXJO were each 0.9% higher, while South Korea .KS11 was up 1.4%.

China's blue-chip CSI300 index .CSI300 was 0.72% higher on Tuesday, after data on Monday that pointed to a continued recovery in the world's second-largest economy against the backdrop of the COVID-19 pandemic. seen clearly a huge wave of liquidity coming to equities in response to the vaccine news and in response to U.S. election news," said Hamish Tadgell, a portfolio manager at SG Hiscock & Company.

"But there are still risks, and as a result we could see the market pull back, I think, particularly as we come into sort of the Christmas period."

Wall Street was weaker on Monday, partly driven by a rebalancing of portfolios, as investors cashed in on gains after a strong month punctuated by updates of COVID-19 vaccines progressing and hopes of a swift economic rebound next year. was profit taking around the world so we ended a record month with a whimper not a bang, and you know, taking a little bit of a breather," said Interactive Brokers Chief Strategist Steve Sosnick.

"I think that markets are pricing in, if not fully pricing a recovery, they are pricing in the vast majority of it (and) it's very hard to meet these elevated expectations."

MSCI's gauge of stocks across the globe .MIWD00000PUS was roughly flat. Hong Kong's Hang Seng index futures .HSI .HSIc1 were down 0.36%, while China's CSI 300 futures .CSI3000 were 0.36% higher.

In the United States the Dow Jones Industrial Average .DJI fell 0.91% on Monday while the S&P 500 .SPX lost 0.46%. The tech-heavy Nasdaq Composite ended down 0.06%.

Moderna Inc MRNA.O applied for U.S. emergency authorization for its COVID-19 vaccine after full results from a late-stage study showed it was 94.1% effective with no serious safety concerns. markets were a little bit lower, that's what was holding us back a little bit," said Chris Weston, head of research at Melbourne brokerage Pepperstone. "People are pretty optimistic for a good 2021."

The dollar was under pressure on Tuesday, after closing out its worst month since July with a little bounce and as investors reckon on even more U.S. monetary easing. prices were slightly lower on uncertainty about whether the world's major oil producers would agree to extend deep output cuts at talks this week. crude CLc1 eased back 11 cents to $45.23 a barrel on Tuesday, while Brent crude LCOc1 futures were largely unchanged at $47.86.

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