GLOBAL MARKETS-Stocks stop short of new peaks as Sino-U.S. tensions weigh

* MSCI all country equity index just shy of record peak
* U.S. stock futures dip, Asia bid slightly
* Major currencies stuck, Chilean peso tumbles
* Asian stock markets: https://tmsnrt.rs/2zpUAr4

By Hideyuki Sano
TOKYO, Nov 29 (Reuters) - Global shares ticked up on Friday,
but hesitated to test an all-time peak as investors worried a
new U.S. law backing Hong Kong protests could derail
Washington's and Beijing's efforts to end their trade war.
MSCI All Country world index .MIWD00000PUS , which
tracks shares in 49 countries, were up 0.05% at 549.62, and
would need to rise only 0.2% to reach all-time peak hit in
January last year before the start of U.S.-China trade war.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS also ticked up 0.05% in early Friday trade while
Japan's Nikkei .N225 gained 0.27%.
U.S. S&P 500 mini futures ESc1 were down 0.1%. New York
markets were shut on Thursday for Thanksgiving holiday and with
many investors seen away also on Friday, uncertainties remain on
how U.S. markets will perceive the latest clash between
Washington and Beijing over Hong Kong.
China warned the United States on Thursday it would take
"firm counter measures" in response to U.S. legislation backing
anti-government protesters in Hong Kong. "Since the U.S. legislation was approved unanimously by the
U.S. Senate and by all but one lawmaker in the House of
Representatives, the law has been expected to take effect," said
Norihiro Fujito, chief investment strategist at Mitsubishi UFJ
Morgan Stanley Securities.
"It has been also expected that China will express harsh
words against it. The question is what real actions Beijing will
take. The working assumption for most investors is that this
will not derail the trade talks, given China is suffering from
an economic slowdown," he said.
On the whole, investors are now betting that while the law
spoils the mood it would not change the game, underpinning many
risk assets.
Sentiment in the region has enjoyed an additional boost from
a strong performance this week of Alibaba Group shares
9988.HK , Asia's largest firm by market capitalisation. Alibaba
has risen 16% since their IPO in Hong Kong on Tuesday.
However, major currencies were kept in tight ranges amid a
dearth of any other significant developments in Sino-U.S. trade
talks.
Against the yen, the dollar traded at 109.52 yen JPY= ,
near its six-month peak of 109.61 set on Wednesday.
The euro stood at $1.1010 EUR= , stuck in a tight range for
the past week.
The British pound traded at $1.2910 GBP=D4 , staying in its
$1.28-1.30 range since mid-October.
As trading in major currencies slumbers, their implied
volatilities, key gauges of expected swings measured by their
option prices, plumbed to new record lows this week.

One exception was the Chilean peso, which has plunged 3.5%
so far this week to an all-time low, prompting the central bank
to unveil $20 billion foreign currency interventions programme.
The peso has plummeted more than 10% this month following
more than a month of protests over inequality that turned
violent again this week.
Oil prices were little changed on Friday but look set to
have one of the best performances in recent months in November,
with Brent futures LCOc1 up 6.0% so far this month, which
would be the biggest gain since April.
U.S. crude futures CLc1 were little changed at $58.09 per
barrel early on Friday. They have risen more than 7% this month.

(Editing by Sam Holmes)