FIXED-GLOBAL MARKETS-Asian stocks open higher after month of exceptional gains

(Corrects index for China, not futures, in paragraph 3)

SYDNEY / NEW YORK, Dec.1 (Reuters) – Asian stock markets opened a little higher on Tuesday, supported by the prospect of a COVID-19 vaccine, reversing the previous day’s declines as investors took profits at the end of a record month.

The largest MSCI Asia-Pacific stock index outside of Japan rose 0.26% on Tuesday after closing the month up 9%, the best November since 2001. Japan’s Nikkei and the S&P Australia’s / ASX 200 were each 0.9% higher, while South Korea rose 1.4%.

China’s top-notch CSI300 index was 0.72% higher on Tuesday, after data on Monday indicated a continued recovery of the world’s second-largest economy amid the COVID-19 pandemic.

“We have clearly seen a huge wave of liquidity coming into equities in response to vaccine news and US election news,” said Hamish Tadgell, portfolio manager at SG Hiscock & Company.

“But there are still risks, and as a result, we could see the market pull back, I think, especially as Christmas approaches.

Wall Street was weaker on Monday, in part due to a portfolio rebalance, as investors took advantage of gains after a month punctuated by rising COVID-19 vaccine updates and hopes of an economic rebound fast next year.

“There was profit taking all over the world, so we ended a record month with a whimper not a blow, and you know, taking a little breather,” said Steve Sosnick, chief strategist at Interactive Brokers.

“I think the markets are, if not fully, evaluating a recovery, they are evaluating the vast majority of it (and) it is very difficult to meet those high expectations.”

MSCI’s share gauge across the world was roughly stable. Hong Kong’s Hang Seng index futures were down 0.36%, while China’s CSI 300 futures were up 0.36%.

In the United States, the Dow Jones Industrial Average fell 0.91% on Monday while the S&P 500 lost 0.46%. The highly technological Nasdaq Composite ended down 0.06%.

Moderna Inc has applied for emergency clearance in the United States for its COVID-19 vaccine after full results from an advanced-stage study showed it to be 94.1% effective without any serious safety concerns.

“The US markets were a little lower, which is what was holding us back a bit,” said Chris Weston, head of research at Melbourne broker Pepperstone. “People are quite optimistic for a good 2021.”

The dollar was under pressure on Tuesday, after closing its worst month since July with a bit of a rebound and as investors forecast even more US monetary easing.

Oil prices were slightly lower amid uncertainty over whether the world’s major oil producers would agree to extend large production cuts during negotiations this week.

U.S. crude fell 11 cents to $ 45.23 a barrel on Tuesday, while Brent futures were largely unchanged at $ 47.86.