* Japan out of recession; China data encouraging
* MSCI World up 0.4%, just off record high
* Oil up 0.5%; dollar slips
* 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 China and
Japan, recent strong corporate earnings and hopes of a COVID-19
vaccine bolstered investor sentiment.
The MSCI World Index of global shares rose 0.4% to 608.98
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%.
U.S. stock futures ESc1 pointed to a similarly positive
start for Wall Street trade 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 1%.
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 down slightly against a basket of currencies
=USD , weighed 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 0.2% to $1,892
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 are chief among
European investors' concerns on Monday and hopes for a
breakthrough have supported sterling against the dollar and the
euro. FRX/
The British pound edged higher against the dollar GBP=D3 ,
changing hands at 1.3219 per dollar, and against the common
currency as well, and last stood at 89.75 pence per euro
EURGBP=D3 .
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". 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 0.8832%.
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Coronavirus cases Nov 16 https://tmsnrt.rs/32NOJdz
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(Editing by Richard Pullin and Raissa Kasolowsky)