GLOBAL MARKETS-Asia shares try to find a floor after headlong fall

* Asian stock markets : https://tmsnrt.rs/2zpUAr4
* S&P 500 futures bounce 1% in Asia, recover early fall
* Nikkei futures off lows, still point to opening drop
* U.S. crude recovers a little of huge losses
* Markets cling to hope of monetary, fiscal stimulus

By Wayne Cole
SYDNEY, March 10 (Reuters) - Asian markets were set for a
fraught session on Tuesday after Wall Street suffered its
biggest one-day loss since the 2008 financial crisis, piling
pressure on policy makers globally to short-circuit the panic.
Speculation of more central bank rate cuts and possible
fiscal stimulus did see U.S. Treasury yields edge up from
historic lows, and oil prices paused after the steepest fall
since the 1991 Gulf war.
"The collapse in oil prices and associated credit concerns
for producers has added another negative layer to a market
already on its knees over the COVID-19 outbreak," said Rodrigo
Catril, a senior FX strategist at National Australia Bank.
"Talk of coordinated fiscal and monetary support is getting
louder," he added, noting U.S. President Donald Trump was
promising "major" steps to support the economy. E-Mini futures for the S&P 500 ESc1 were at least trying
to steady, rallying 1% in Asia after an early slide.
Nikkei futures NKc1 also came off lows, though they were
still 600 points below Monday's cash close .N225 .
Wall Street had been on the brink of a bear market with all
the major indices down almost 20% from their all-time peak,
which amazingly were touched just 13 sessions ago.
The Dow .DJI fell an eye-watering 7.79%, while the S&P 500
.SPX lost 7.60% and the Nasdaq .IXIC 7.29%. All 11 major
sectors of S&P 500 ended the session deep in the red, with
energy and financials taking the worst hit.
Energy stocks led the losses globally after Brent crude
futures LCOc1 closed down 24% as markets braced for a price
war between Saudi Arabia and Russia. O/R
U.S. crude CLc1 inched up 92 cents to $32.05 on Tuesday,
though that followed a 24% plunge overnight.
Headlines on the coronavirus were no better with Italy
ordering everyone across the country not to move around other
than for work and emergencies, while banning all public
gatherings. BANK CIRCUIT BREAKER
Such has been the conflagration of market wealth, that
analysts assumed policy makers would have to react aggressively
to prevent a self-fulfilling economic crisis.
"Without a circuit-breaker, there is a risk the volatility
tightens global financial conditions and weakens economies,"
said Kim Mundy, an international economist at CBA.
"Because of the risks, we expect central banks to cut policy
interest rates further as well as use other, unconventional,
monetary policy tools."
The U.S. Federal Reserve on Monday sharply stepped up the
size of its fund injections into markets to head off stress.
Having delivered an emergency rate cut only last week,
investors are 0#FF: fully pricing an easing of at least 75
basis points at the next Fed meeting on March 18, while a cut to
near zero was now seen as likely by April.
Britain's finance minister is due to deliver his annual
budget on Wednesday and there is much talk of coordinated
stimulus with the Bank of England. The European Central Bank meets on Thursday and will be
under intense pressure to act, even though rates there are
already deeply negative. Bonds have charged ahead of the central banks to essentially
price in a global recession of unknown length. Yields on 10-year
U.S. Treasuries US10YT=RR reached as low as 0.318% - a level
unthinkable just a week ago - and were last at 0.54%.
The dive in yields and Fed rate expectations has put an end
to a multi-year uptrend for the dollar, to the benefit of the
Japanese yen, euro and Swiss franc. USD/
The dollar was huddled at 102.48 yen JPY= , having shed
2.8% overnight in the largest one-day drop since late 2016.
Chart support was put around 101.20 but was unlikely to stop a
retreat to the next major bear target at 100.00.
The euro was lording it at $1.1430 EUR= , after climbing
1.4% on Monday to the highest in over 13 months at $1.1492.
Gold was restrained to $1,668.20 per ounce XAU= amid talk
some investors were having to sell to raise cash to cover margin
calls in stocks and other assets. GOL/

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(Editing by Stephen Coates)