Asian shares ease from record high

SYDNEY, Dec 07 (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.

In a signal markets elsewhere would start weaker, eurostoxx 50 futures were 0.4 per cent down, futures for Germany's DAX eased 0.3 per cent while those of London's FTSE were flat. E-Mini futures for the S&P 500 slipped 0.2 per cent.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.1 per cent following four straight sessions of gains. The index hit a record high of 644.3 points early on Monday.

It is up about 16 per cent so far this year, the best since a 33 per cent jump in 2017.

China's blue-chip index dropped 0.8 per cent, largely ignoring strong export data, while Hong Kong's Hang Seng was down 1.7 per cent.

Japan's Nikkei declined 0.46 per cent while Australian shares were up 0.6 per cent.

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.

"One thing that the market has been concerned about is that on his (way) out of office Trump would look for some retribution on China. So this news speaks to that fear," said Kyle Rodda, market strategist at IG Markets in Melbourne.