FOREX-Yen rises, yuan falls after China's Hubei reports sharp rise in virus cases

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

By Stanley White
TOKYO, Feb 13 (Reuters) - The yen rose from a three-week low
against the dollar on Thursday after China's Hubei province, the
epicentre of a coronavirus outbreak, reported a sharp jump in
the number of new cases in a jolt to markets and sparking a
flight for safe-haven assets.
The Chinese yuan slipped against the dollar in offshore
trade, while stocks in Asia also faltered as the latest update
on the spread of the virus provided a grim reminder to investors
that the epidemic remains a potent threat to the global economic
outlook. Hubei on Thursday reported 14,840 new cases as of Feb. 12,
up from 1,638 new cases on Tuesday, with the number of deaths in
the province rising a sharp 242 to 1,310.
Hubei's health commission said it started including cases
diagnosed with a new method. Uncertainty about the virus, which
emerged in Hubei's capital Wuhan late last year and has spread
to 24 other countries, has shaken up markets over the past
weeks.
"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 0.18% on Thursday to 109.90 yen,
pulling back from its weakest since Jan. 21.
In the offshore market, the yuan CNH=D3 fell 0.16% to
6.9840 yuan.
The Australian dollar AUD=D3 , widely used as a proxy for
risk on Chinese assets, fell 0.21% to $0.6724, while the New
Zealand dollar NZD=D3 dipped 0.2% to $0.6452.
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 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.