GLOBAL MARKETS-Asian stocks hit record peak as vaccine hopes dampen virus fears

* MSCI AxJ index hits all-time high; Nikkei at 29-year top
* Currencies, commodities more muted despite equities' gains
* Japan out of recession; China data encouraging
* Asian stock markets: https://tmsnrt.rs/2zpUAr4

By Tom Westbrook
SYDNEY, Nov 16 (Reuters) - Asian stocks hit a record high on
Monday as vaccine optimism and strong economic data from China
and Japan outshone worries about rising coronavirus cases,
lifting just about every sector.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS gained 1% to hit its highest since its launch in
1987 with markets across the region making milestone peaks.
Japan's Nikkei .N225 traded at 29-year highs, South
Korea's Kospi .KS11 at its highest since early 2018 and
Australia's ASX 200 .AXJO hit an eight-month peak in the
morning, before a glitch halted trade. .T .KS .AX
S&P 500 futures ESc1 rose 0.6% following the index's
record close on Friday, Nasdaq 100 futures NQc1 leapt 1% and
European futures were up strongly with EuroSTOXX 50 futures
STXEc1 up 0.8% and FTSE futures FFIC1 up half a percent.
"There's just mountains of cash sitting on the sidelines,
waiting to be put to work and since we've got this vaccine news,
as well as diminished risk around the U.S. elections, all of
this is flying into equities," said Kyle Rodda, analyst at IG
Markets. "Everyone's thinking now that it's the cue to get in."
Currencies and commodity markets were a little more
circumspect, but the dollar was down a tad against trade-exposed
currencies and oil prices firmed after falling on Friday.
FRX/ O/R
Japanese economic growth, which beat records and forecasts
to pull the world's third-largest economy out of recession and
better-than-expected industrial output in China added to the
enthusiastic mood, as did a weekend trade deal.
While light on detail, 15 Asia-Pacific economies, including
China and Japan, but excluding the United States, agreed to
reduce future tariffs at a time of rising protectionism
elsewhere. TO BE CAUTIOUS
The flow driven gains came despite plenty of reasons to
worry. U.S. President Donald is digging in for a drawn-out
transition to President-elect Joe Biden. Axios reported that Trump plans a flurry of aggressive
policy moves against China in the coming 10 weeks. Coronavirus cases are surging in Europe and the United
States and new outbreaks have emerged in South Korea, Japan and
Australia. Brexit talks are at delicate crossroads, again.
A wave of state-owned enterprise defaults in China has also
spooked mainland bond investors. A few of these fears kept currency market moves in check and
left oil, a proxy for global growth, well below last week's
peaks as traders brace for a grim winter ahead.
"The risk of even tighter restrictions loom in order to
contain the spread of the virus," said Commonwealth Bank of
Australia commodity analyst Vivek Dhar. "Oil demand is
particularly exposed to restrictions that limit mobility since
transport accounts for two thirds of global oil consumption."
On the Brexit front, the departure of hardline adviser
Dominic Cummings from Downing Street is seen as a positive,
perhaps allowing more British concessions, but chief negotiator
David Frost said on Twitter that talks "may not succeed".
Sterling crept higher against the dollar GBP= and euro
EURGBP= . The common currency EUR= rose 0.1% against the
dollar to $1.1848.
The kiwi NZD=D3 rose 0.5% to $0.6883 while the Australian
dollar lagged a tad ahead of a week of central bank speeches and
significant data, beginning with Reserve Bank of Australia
Governor Philip Lowe at 0840 GMT.
A slew of U.S. Federal Reserve speakers are also up this
week, beginning with Vice Chair Richard Clarida at 1900 GMT.
Bonds, which had sold off strongly on vaccine news last
week, were steady with where they left off on Friday, with the
yield on benchmark U.S. 10-year debt US10YT=RR at 0.8930%,
down from last week's high above 0.97%. US/
Oil prices inched higher, with Brent crude futures LCOc1
up 0.7% at $43.08 a barrel but below last week's two-month high
of $45.30. U.S. crude CLc1 rose 1% to $40.55 a barrel. O/R
Gold XAU= rose 0.4% to $1,896 an ounce. GOL/