GLOBAL MARKETS-Asia shares up as plans to re-open U.S economy offset record slump in China GDP

* Asian stock markets: https://tmsnrt.rs/2zpUAr4
* Stocks take China GDP in stride
* Dollar falls as safe-haven demand wilts
* U.S. oil futures hit 18-year low

By Stanley White and Koh Gui Qing
TOKYO/NEW YORK, April 17 (Reuters) - Asian stocks gained on
Friday as President Donald Trump's plans to gradually re-open
the U.S. economy offset data that showed China suffered its
worst economic contraction on record due to the coronavirus
outbreak.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS was up 2.6% after reaching a five-week high.
Shares in China .CSI300 rose 1.8% as the weak GDP data
reinforced expectations that more stimulus is coming, while
shares in Australia .AXJO were up 2.62%.
E-Mini futures for the S&P 500 index ESc1 traded 3.38%
higher, also close to a five-week high.
Data from China showed the world's second-largest economy
shrank for the first time since at least 1992 because of the
coronavirus outbreak and tough containment measures. Gross
domestic product contracted 6.8% in the quarter year-on-year,
slightly more than expected, and 9.8% from the previous quarter.
Retail sales also fell more than expected in March, but
industrial output only dipped slightly, suggesting its
manufacturing sector at least is recovering more quickly.
However, the Chinese data and other forecasts that said the
world is in its worst recession in decades caused barely a
ripple in Asian shares as investors focus instead on whether the
pandemic is peaking and how soon governments will start to ease
lockdowns which have crippled business and consumer activity.
Some analysts cautioned, however, that it is premature to
say the health crisis is under control.
"Stocks are reacting naturally to Trump's talk of re-opening
the economy, because some people don't want to be left out of
the rally," said Ayako Sera, market strategist at Sumitomo
Mitsui Trust Bank in Tokyo.
"The problem is there is a big gap between expectations and
the underlying economic reality, which is that many countries
are still very weak."
Shares in Asia got off to a bright start, mirroring gains on
Wall Street, as hopes that the United States will roll back
restrictions on businesses and reports about a potential
treatment for COVID-19 boosted risk appetite.
Joining a handful of other governments that are restarting
their economies after mass shutdowns to contain the pandemic,
U.S. President Donald Trump said on Thursday U.S. state
governors can re-open businesses in a staggered, three-stage
process. Some analysts remain sceptical of Trump's plan, but the
equity markets took the comments as a sign that the worst of the
pandemic may be over.
"Some believe when the crisis is over, everything will
quickly return to what life was like in January, but I think
there will be some lingering effects," said Byron Wien, the vice
chairman of private wealth solutions at asset manager Blackstone
Group Inc.
"I think the recovery will look like a square root sign, a
"V" at the beginning and then a gradual recovery."
Equity markets also took the China data in stride partly
because it has contained the virus and managed to get large
parts of its economy back up and running from a standstill in
February.
Japan's Nikkei stock index .N225 rose 2.55% on Friday,
while shares in South Korea .KS11 gained 3.27%.
Yields on benchmark 10-year U.S. Treasuries US10YT=RR rose
slightly from a two-week low in Asia, while Treasury futures
TYc1 fell in another tentative sign of investor optimism.
US/
The dollar fell against the yen JPY=EBS , the euro
EUR=EBS , and sterling GBP=D3 as hope for future economic
growth reduced safe-haven demand for the greenback.
Spot gold XAU= fell 0.5% to $1,708.78 per ounce in another
sign that investors felt more comfortable taking on risk. GOL/
U.S. crude futures CLc1 fell to an 18-year low after
OPEC's lowering of its global demand forecast, but Brent crude
LCOc1 rose 1.69% to $28.29 a barrel. O/R