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Shares stuck near peaks, U.S. oil futures extend declines

Published 27/11/2020, 01:25 pm
© Reuters.
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* Asian stock markets: https://tmsnrt.rs/2zpUAr4

* Highly-anticipated vaccine facing more scrutiny

* Equity markets pull back from record highs

* Oil hit by concerns about oversupply

* U.S. financial markets closed Thursday for Thanksgiving

By Stanley White

TOKYO, Nov 27 (Reuters) - Asian shares stalled near record highs on Friday as investors weighed renewed doubts about a highly-anticipated coronavirus vaccine against hopes that some of the region's economies will recovery quicker than their Western peers.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.11% but remained with striking distance of a life-time peak touched this week. Australian shares .AXJO were down 0.56%. Japan's Nikkei .N225 fell 0.12% in choppy trade.

Shares in China .CSI300 rose 0.37% after data showed Chinese industrial profits hit a nine-year high. South Korean stocks .KS11 also rose 0.05%. S&P 500 e-mini stock futures ESc1 fell 0.29% in Asian trade. U.S. financial markets were closed on Thursday for the Thanksgiving holiday and will trade on a partial schedule later on Friday.

U.S. oil prices extended their declines from a seven-month high due to signs of oversupply.

British drugmaker AstraZeneca's AZN.L coronavirus drug was touted as a "vaccine for the world" due to its inexpensive cost, but the efficacy of the vaccine is now facing more intense scrutiny, which experts say could delay its approval. scientists have raised doubts about the robustness of results showing the shot was 90% effective in a sub-group of trial participants who, by error initially, received a half dose followed by a full dose.

"With global case numbers having now topped 60 million... there is certainly some rough terrain ahead for the global recovery, and that can create economic scarring," analysts at ANZ Bank wrote in a memo.

MSCI's broadest gauge of world stocks .MIWD00000PUS was up 0.02% on Friday in Asia, sitting just below a record high reached in the previous session.

Doubts about the distribution of a coronavirus vaccine have placed renewed focus on the current state of the pandemic, which looks grim for many places.

U.S. hospitalizations for COVID-19 are at a record and experts warn that Thanksgiving could lead to further infections and deaths. than 20 million people across England will be forced to live under the toughest restrictions even after a national lockdown ends on Dec. 2. Partial lockdowns in some European countries have also raised concern about economic growth.

The European Central Bank's chief economist highlighted these concerns in dovish comments on Thursday, which pushed European bond yields lower. euro EUR=EBS , which last bought $1.1911, showed little reaction because currency traders have largely priced in expectations for additional ECB easing next month.

The dollar index =USD was near its lowest in more than two months, but moves were subdued due to the U.S. trading holiday.

The yield on benchmark 10-year Treasury notes US10YT=RR fell to 0.8553% as some investors sought the safety of holding government debt.

U.S. crude CLc1 dipped 1.4% to $45.07 a barrel. However, Brent crude LCOc1 rose 0.35% to $47.79 per barrel.

Fuel demand is falling due to renewed coronavirus lockdowns, but some oil producers are not complying with agreed production cuts, which raises concerns about oversupply.

Spot gold XAU= , which is often sought during times of uncertainty, was little changed at $1,809.60 per ounce following a 0.3% gain on Thursday. GOL/

Bitcoin BTC=BTSP , the world's biggest cryptocurrency, edged up to $17,264 on Thursday, but it tumbled by 8.4% in the previous session after failing to take out its record high of $19,666.

Bitcoin has rallied around 140% this year, fuelled by demand for riskier assets.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ World FX rates in 2020

http://tmsnrt.rs/2egbfVh 2020 asset performance

http://tmsnrt.rs/2yaDPgn

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