GLOBAL MARKETS-Asian shares advance as vaccine, recovery hopes triumph soft U.S. data

* Asian shares gain 0.3%, Nikkei up 0.6%
* U.S. S&P500 futures up 0.2%, erasing Wednesday's losses
* World stocks on track to make biggest monthly gain ever
* 2020 asset performance http://tmsnrt.rs/2yaDPgn
* Global stock market outlook: https://tmsnrt.rs/3nT0J5r

By Hideyuki Sano
TOKYO, Nov 26 (Reuters) - Asian shares advanced on Thursday
as markets' euphoric mood over COVID-19 vaccines and the
prospects of more political predictability and economic stimulus
under the incoming Biden administration overrode a slate of weak
U.S. economic data.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS rose 0.3% while Japan's Nikkei .N225 gained
0.6%.
U.S. S&P 500 future ESc1 rose 0.2% in Thursday's Asian
trade while Nasdaq futures NQc1 rallied 0.4%.
MSCI's broadest gauge of the world's shares covering 49
markets .MIWD00000PUS added 0.1% to bring its gains so far
this month to 12.7%, on course to make its biggest monthly gain
on record.
The rally started after Democrat Joe Biden's U.S. election
victory earlier this month raised hopes for more government
spending to support the pandemic-hit economy and for more policy
predictability after four years of Donald Trump's presidency.
"Reduced policy uncertainties are helping markets. It will
be easier for companies to make capital expenditures," said
Arihiro Nagata, general manager of global investment at Sumitomo
Mitsui Bank.
"It's true that stock prices are quite expensive but markets
are finding fewer and fewer reasons to sell them. In this
environment, you can't make profits by selling. The only
question to ask is what assets you should buy."
On Wall Street on Wednesday, the S&P 500 index .SPX shed
0.16% and the Dow Jones Industrial Average .DJI 0.58%, though
the tech-heavy Nasdaq Composite .IXIC increased 0.47%.
Traders attributed falls in S&P 500 and the Dow Jones to
weak U.S. economic data.
Figures from the U.S. Labor Department's weekly jobless
claims suggested that an explosion in new COVID-19 infections
and business restrictions were boosting layoffs and undermining
the labor market recovery. "I think a lot of people got ahead of themselves imagining
that the recovery was taking shape. To me the recovery isn't
taking shape until we have a viable vaccine," said Justin
Lederer, Treasury analyst and trader at Cantor Fitzgerald.
But investors also noted markets will remain awash with cash
to invest, with the world's central banks ready to provide more
support for the pandemic-stricken economy.
Minutes from the U.S. Federal Reserve's last policy meeting
showed policymakers consider giving markets a better steer on
how long they will continue to buy bonds to provide support to
an economy under siege from a resurgence of coronavirus
infections. "It's somewhat out of character that they mention taking
this step "fairly soon" when they haven't begun a discussion of
this with the public," wrote Michael Feroli, chief U.S.
economist at J.P. Morgan in New York.
The Fed could extend of the maturity of its Treasury
purchases if its board members judge that deterioration in the
pandemic warrants more policy accommodation, he added.
In commodities, oil prices rose for a fifth day as a
surprise drop in U.S. crude inventories added to the positive
mood stemming from hopes of demand recovery. O/R
U.S. crude CLc1 rose 0.77% to $46.06 per barrel and Brent
LCOc1 gained 0.88% to $49.04
In the currency market, the U.S. dollar stayed under
pressure as riskier currencies benefited from the increased
optimism.
The dollar's index against a basket of major currencies
dipped 0.07% to 91.919 USD= , hitting its lowest levels in
almost three months.
The euro held firm at $1.1925 EUR= while sterling also
stood near three-month high at $1.3391 GBP=D4 .
The yen was little moved at 104.28 yen to the dollar JPY= .
Trade was slow as U.S. financial markets will be closed on
Thursday for the Thanksgiving holiday. U.S. bonds and stocks
will trade on a partial schedule on Friday.

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Global assets http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Emerging markets http://tmsnrt.rs/2ihRugV
MSCI All Country Wolrd Index Market Cap http://tmsnrt.rs/2EmTD6j
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