REFILE-GLOBAL MARKETS-Shares step back as hopes of early end to coronavirus fade

(Corrects syntax in headline)
* Ex-Japan Asian shares down 0.1%, Nikkei loses 0.8%
* Hubei province reports nearly 5,000 new virus cases
* Dollar hits 4-month high as investors flee to U.S. assets

By Hideyuki Sano
TOKYO, Feb 14 (Reuters) - Global shares eased on Friday, as
investors were spooked by a sharp rise in the number of
coronavirus cases in China this week while oil prices extended
gains on hopes of more production cuts.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS dipped 0.08% with South Korea's Kospi .KS11
falling 0.25% while Japan's Nikkei .N225 slid 0.67%.
U.S. stock futures ESc1 shed 0.07% in Asia, after the S&P
500 .SPX lost 0.16%.
China's Hubei province on Friday reported 4,823 new cases,
well above the levels seen earlier this month. While a record
spike seen a day earlier was mostly due to new methodology used
to count new infections, it nonetheless weighed on investor
sentiment. "Until Wednesday, people had been saying that you can buy
shares because the number of new cases had peaked out. The
reality seems to be quite different. An early end to this seems
improbable," said Norihiro Fujito, chief investment strategist
at Mitsubishi UFJ Morgan Stanley Securities.
Japan confirmed its first coronavirus death on Thursday, a
third case outside mainland China after two previous fatalities
in Hong Kong and the Philippines.
"Investors will surely avoid Asia for the time being and
will shift funds to the U.S., geographically the most separated
from the region," he said.
That meant more demand for the U.S. dollar in the currency
exchange market.
The dollar's index against a basket of currencies =USD hit
a four-month high, having risen 1.8% so far this month.
The euro fell to as low as $1.0834, its lowest level in
almost three years, in U.S. trade on Thursday. It last stood at
$1.0840 EUR= ,
It also hit a nine-week low against the British pound and
4-1/2 year low against the Swiss franc.
The euro has been bruised also by rising political
uncertainties in Germany as well as worries about sluggish
growth in the region.
Annegret Kramp-Karrenbauer, who had been long expected to
succeed Chancellor Angela Merkel next year, earlier this week
gave up her bid to run for the top job, raising more concerns
about political stability in the euro zone's biggest economy.
The euro zone GDP data due later on Friday is expected show
a paltry growth of 0.1%.
Sterling jumped and so did UK bond yields as investors bet
on a higher-spending budget next month after British Prime
Minister Boris Johnson forced the resignation of Sajid Javid as
finance minister. Javid, known to have been at odds with Johnson's powerful
policy adviser Dominic Cummings over spending plans, was
replaced by Rishi Sunak, a Johnson ultra-loyalist.
The pound traded at $1.3045 GBP=D4 , after 0.65% gains on
Thursday.
The 10-year gilts yield jumped to a three-week high of
0.660% GB10YT=RR .
The yen stayed in a familiar range in the past couple of
weeks and last traded at 109.82 yen JPY= .
Oil prices extended their week-old recovery on hopes that he
world's biggest producers would cut output more as demand looks
set to drop sharply due to the outbreak of coronavirus.
The International Energy Agency (IEA) expects oil demand in
the first quarter to fall for the first time in 10 years.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were
flat at $51.42 per barrel in early Friday trade but up 2.2% on
the week, on course to post their first weekly gains in six
weeks.

(Editing by Sam Holmes)