FOREX-Yen gains, yuan and Aussie down as virus cases and deaths rise

* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
* Rise in new cases comes after Hubei changes methodology
* Yen gains, yuan dips as virus anxiety return to haunt
markets
* Asian Stocks and Australian dollar also pullback

By Stanley White
TOKYO, Feb 13 (Reuters) - The yen rose from a three-week low
against the dollar on Thursday as investors sought safe havens
after China's Hubei province, the epicentre of a coronavirus
outbreak, reported a sharp jump in the number of new cases.
The Chinese yuan slipped against the dollar as the latest
update on the spread of the virus provided a grim reminder to
investors of the threat to the global economy, that has shaken
markets in recent weeks. Using a new method of diagnosis, Hubei on Thursday reported
14,840 fresh cases of the virus as of Feb. 12, up from 1,638 new
cases on Tuesday, with the number of deaths in the province
rising by a daily record of 242 to 1,310.
"When you see numbers like this, you can't help but move to
risk-off trades, which means buy the yen and sell stocks," said
Ayako Sera, market strategist at Sumitomo Mitsui Trust Bank in
Tokyo.
"If the authorities can reasonably explain this, things
might calm down, but I expect risk aversion to continue."
The yen JPY=EBS rose 0.2% on Thursday to 109.89 yen,
pulling back from its weakest since Jan. 21.
In the onshore market, the yuan CNY=CFXS slipped 0.13% to
6.9809 per dollar, while offshore the Chinese currency CNH=D3
gave up 0.14% to 6.9830.
The Australian dollar AUD=D3 , widely used as a proxy for
risk on Chinese assets, fell 0.22% to $0.6724, while the New
Zealand dollar NZD=D3 dipped 0.2% to $0.6453.
Both Australian and New Zealand have extensive trade ties
with China, with trade in commodities, tourism and education
especially vulnerable to disruption from the virus.
The New Zealand dollar had enjoyed a lift the previous day
when the central bank dropped a reference to the chance of
future rate cuts in its policy review. Earlier on Thursday, an
assistant governor told Reuters the central bank has a "genuine
neutral bias" amid improving domestic demand, but is open to
reviewing that position if the economic hit from the coronavirus
epidemic worsened. The World Health Organization has likened the epidemic's
threat to terrorism, underscoring the anxiety in financial
markets about its impact across businesses and trade worldwide.
Chinese policymakers have implemented a raft of measures to
support the economy as fears grow the coronavirus outbreak could
have a damaging impact on growth in the Asian giant and
globally. Elsewhere in the currency market, the dollar EUR=EBS
traded at $1.0868 per euro, close to its strongest level in more
than two years due to growing optimism about the health of the
U.S. economy.
Sentiment for the greenback has turned positive since data
last week showed the U.S. labour market is improving. In contrast, the euro wilted on Wednesday after data showed
euro zone manufacturing output plunged more than expected in
December, boding ill for fourth quarter euro zone gross domestic
product data due on Friday. The euro EURGBP=D3 changed hands at 83.91 pence on
Thursday in Asia, close to its lowest since Dec. 17.
The pound GBP=D3 was little changed at $1.2955, having
managed to inch away from 2-1/2-month lows hit at the start of
the week due to encouraging economic data. But, investors remain
anxious over the tough line taken by British Prime Minister
Boris Johnson over trade talks with the European Union.