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REFILE-GLOBAL MARKETS-Global stocks retreat on rising second wave fears

Published 06/18/2020, 10:39 AM
Updated 06/18/2020, 11:20 AM
© Reuters.
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(Corrects day in paragraph 1)
* S&P 500 futures, MSCI ex-Japan Asia shares down more than
1%
* Investors fret over rise in infections in U.S, China
* Australian dollar hit by weak local jobs data
* Asian stock markets: https://tmsnrt.rs/2zpUAr4

By Hideyuki Sano and Katanga Johnson
TOKYO/WASHINGTON, June 18 (Reuters) - Asian stocks and Wall
Street futures fell on Thursday as spiking coronavirus cases in
some U.S. states and China crushed hopes of a quick global
economic comeback from the pandemic.
S&P 500 mini futures EScv1 fell 1.2% in early Asian trade
while MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS lost as much as 1%.
Japan's Nikkei .N225 lost 1.3% while in mainland China,
bluechip CSI300 shares .CSI300 shed 0.1% in early trade.
On Wall Street, the S&P 500 .SPX lost 0.36% on Wednesday
but tech-heavy Nasdaq .IXIC added 0.15% due to hopes of
increased demand for various online services due to the
epidemic.
Several U.S. states including Oklahoma, where President
Donald Trump plans a campaign rally on Saturday, reported a
surge in new coronavirus infections. The daily count of infections also hit a new benchmark in
California and Texas, while Florida and Arizona also recorded
the second-highest daily increases.
China's capital cancelled scores of flights, shut schools
and blocked off some neighbourhoods as it ramped up efforts to
contain a coronavirus outbreak that has fanned fears of wider
contagion. "It is a big shock to markets that China, which appears to
have successfully quashed the disease, is seeing a second wave.
And in the U.S. we see record cases in many states," said
Norihiro Fujito, chief investment strategist at Mitsubishi UFJ
Morgan Stanley Securities.
"All this suggests that the more you re-start the economy,
the more infections you have. People have thought the economy
will quickly recover in July-September after dismal April-June.
But that is now becoming uncertain."
Investors rushed to the safety of bonds, with the 10-year
U.S. Treasuries yield US10YT=RR falling 3 basis points to
0.704%.
In the currency market, the safe-haven yen rose about 0.3%
to 106.72 per dollar JPY= while the U.S. dollar also firmed
against risk-sensitive currencies.
The euro dipped 0.1% to $1.1235 EUR= while the Australian
dollar AUD=D4 lost 0.4% to $0.6852, also hit by worse than
expected employment data.
Australia's unemployment rate jumped to the highest in about
two decades in May as nearly a quarter of a million people lost
their jobs due to the coronavirus pandemic-driven
shutdowns. Oil prices also dropped with U.S. crude futures CLv1
falling 1.9% to $37.49 per barrel, while international benchmark
Brent LCOc1 lost 1.4% to $40.14 a barrel.


(Editing by Sam Holmes)

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