* Japan out of recession; China data encouraging
* MSCI World up 0.4%, just off record high
* Oil up 0.8%; gold up 0.3% and dollar flat
* Sterling dips against dollar, euro on Brexit talks
* COVID-19 cases: https://tmsnrt.rs/32NOJdz
By Simon Jessop and Tom Westbrook
LONDON/SYDNEY, Nov 16 (Reuters) - Global stocks eyed a fresh
record high on Monday as signs of economic recovery in Asia,
recent strong corporate earnings and hopes of a COVID-19 vaccine
bolstered investor sentiment.
The MSCI World Index of global shares .MIWD00000PUS rose
0.5% to 608.79 points, just shy of the record high hit briefly
earlier in the month, helped by strong overnight gains in Asia's
leading markets and a stronger open for most European bourses.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS hit its highest level since launching in 1987 as
Japan pulled out of recession, China posted better-than-expected
industrial output data and the region signed the largest ever
trade deal. Taking their lead, European indices also rose with Britain's
FTSE 100 .FTSE and the pan-Europe STOXX Europe 600 .STOXX
both up around 0.7%.
"The markets get the new trading week off to a solid start,
which is encouraging given all the excitement generated in the
last seven days by news of vaccine breakthroughs," said AJ Bell
investment director Russ Mould.
"Solid and steady gains are arguably just what investors
need after a very volatile period."
U.S. stock futures ESc1 in turn pointed to a positive
start for Wall Street later in the day.
"With the futures pencilling in a 300-point rise, the Dow is
set to start the week at 29,770, finally making good on the
all-time high intraday levels struck this time last week," said
Connor Campbell, financial analyst at Spreadex.
The prospect of economic recovery also helped oil prices
strengthen, with both Brent crude futures LCOc1 and West Texas
Intermediate up around 0.8%, just off their intraday highs.
Amid all the optimism, European government bond yields also
fell back with Italian benchmark 10-year yields down 3 basis
points.
Not every asset was swept up by the rising tide, however,
with the dollar flat against a basket of currencies =USD ,
weighed down by fresh data over the weekend showing an increase
in the number of COVID-19 cases. Gold XAU= steadied near a one-week high, up 0.3% at $1,893
an ounce. GOL/
While rising cases of the coronavirus were a risk, Morgan
Stanley strategists urged investors to "keep the faith" in their
2021 outlook note.
"We think this global recovery is sustainable, synchronous
and supported by policy, following much of the 'normal'
post-recession playbook. Overweight equities and credit against
cash and government bonds, and sell dollars."
For stocks, the analysts see earnings-per-share growth of
between 25% and 30% across regions, with double-digit total
returns through the end of 2021 that should helped power the S&P
500 to 3,900 points from its current 3,585 points.
ASIA MARCHES ON
The announcement, a week ago, that Pfizer PFE.N had
developed a very effective vaccine has investors hoping for
similar good news soon from rival Moderna MRNA.O and looking
past a tough winter to a better spring and summer ahead.
Besides the virus, Brexit trade talks were chief among
European investors' concerns on Monday, with hopes for a
breakthrough ebbing slightly to leave sterling weaker against
the dollar and the euro. FRX/
The British pound gave up early gains to edge lower against
the dollar GBP=D3 , changing hands at 1.3176 per dollar, and
against the common currency as well, and last stood at 89.90
pence per euro EURGBP=D3 .
While the departure of hardline adviser Dominic Cummings
from Downing Street is seen as a positive, perhaps allowing more
British concessions, the UK's chief Brexit negotiator David
Frost said on Twitter that talks "may not succeed". A slew of U.S. Federal Reserve speakers are also up this
week, beginning with Vice Chair Richard Clarida at 1900 GMT.
U.S. bonds, which had sold off strongly on vaccine news last
week, were again slightly lower, with the yield on benchmark
U.S. 10-year debt US10YT=RR at 0.8799%.
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(Editing by Richard Pullin, Raissa Kasolowsky and Susan Fenton)