GLOBAL MARKETS-Asian shares slip from all-time highs; oil falls on virus case surge

(Adds Chinese shares, updates levels throughout)
* Risk appetite fuelled by hopes of COVID-19 relief
* JP Morgan sees strongest global GDP rebound in two decades
* Sterling weaker ahead of looming Brexit deadline
* Asian stock markets : https://tmsnrt.rs/2zpUAr4

By Swati Pandey
SYDNEY, Dec 7 (Reuters) - Asian shares retreated from a
record peak on Monday after a Reuters report the United States
was preparing to impose sanctions on some Chinese officials
highlighted geopolitical tensions, while oil prices fell on
surging virus cases.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS fell 0.3% following four straight sessions of
gains.
It is still up about 16% so far this year, the best since a
33% jump in 2017.
China's blue-chip index .CSI300 dropped 0.6% while Hong
Kong's Hang Seng .HSI was down 1.2%.
Japan's Nikkei .N225 declined 0.3% while Australian shares
.AXJO were up 0.5%.
E-Mini futures for the S&P 500 ESc1 were down 0.1% after
starting higher.
The sell-off began after Reuters exclusively reported,
citing sources, that the United States was preparing sanctions
on at least a dozen Chinese officials over their alleged role in
Beijing's disqualification of elected opposition legislators in
Hong Kong. The move comes as President Donald Trump's administration
keeps up pressure on Beijing in his final weeks in office.
Asian markets had initially started the week on a positive
note on hopes of a faster global recovery as coronavirus
vaccines get rolled out, starting this week in Britain.

U.S. authorities will also this week discuss the programme
before the expected first round of vaccinations this month.
Hopes the vaccines will help curb the pandemic which has so
far killed more than 1.5 million people globally sent shares
soaring in recent weeks.
On Wall Street, stock indexes reached fresh all-time highs
on Friday with the Dow .DJI rising 0.8%, the S&P 500 .SPX
gaining 0.9% and the Nasdaq .IXIC adding 0.7%. .N
"The vaccine will break the link between mobility and
infection rate, allowing for the strongest global GDP growth in
more than two decades," JPMorgan analysts wrote in a note,
forecasting global growth of 4.7% in 2021.
"Tracking second waves through October and November,
economic activity has surprised to the upside. This is true in
both Europe and the U.S. This may be why financial markets have
largely ignored the spike in cases, hospitalizations, and
deaths."
Still, expectations of a U.S. stimulus gathered pace after
weak payrolls data last week, following months of deadlocked
negotiations.
The U.S. economy added the fewest workers in six months in
November, with nonfarm payrolls increasing by 245,000 jobs last
month, much lower than expectations for a 469,000 increase.
A bipartisan group of Democrats and Republicans proposed a
compromise $0.9 trillion package that leaders on both sides
appear open to agreeing to. In currencies, investor focus is on a last-ditch attempt by
Britain and the European Union to strike a post-Brexit trade
deal this week, with probably just days left for negotiators to
avert a chaotic parting of ways at the end of the year.
If there is no deal, a five-year Brexit divorce will end
messily just as Britain and its former EU partners grapple with
the severe economic cost of the COVID-19 pandemic.
The pound GBP= was down 0.06% at $1.3429 while the single
currency EUR= was up 0.1% at $1.2132, not too far from an
April 2018 high of $1.2177.
The risk sensitive Australian dollar AUD=D3 was barely
changed at $0.7427.
That left the U.S. dollar down 0.1% at 90.715 against a
basket of major currencies, after hitting a 2-1/2 year low last
week. USD=
In commodities, oil prices slipped from its highest levels
since March as a continued surge in coronavirus globally forced
a series of renewed lockdowns, including strict new measures in
Southern California. O/R
U.S. crude CLc1 was off 22 cents at $46.04 per barrel and
Brent LCOc1 was down 19 cents at $49.06. Brent has lost about
a quarter of its value this year so far.
Spot gold XAU= , which hit a record high of $2,072.49 an
ounce, was last at $1,837.4, still up a hefty 21% this year.

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(Editing by Lincoln Feast)