GLOBAL MARKETS-Asia stocks on defensive as oil pain spreads

* Asian shares hit 2-week low before erasing losses
* June WTI near $10 as investors wary of negative levels
* U.S. Treasury yields fall as investors seek shelter
* Dollar, safe-haven currencies in demand
* European stock futures up about 1%

By Hideyuki Sano
TOKYO, April 22 (Reuters) - Asian share markets were on the
defensive on Wednesday as the floor fell out from under crude
prices, sparking worries about further turmoil in the energy
sector, already reeling from the heavy blow from global
shutdowns.
The dizzying dive in oil has turned investors away from
stocks to the safety of high-grade bonds, with short-term U.S.
Treasuries yields edging down near record low levels.
European shares are on course to claw back earlier losses
with pan-European Euro Stoxx 50 futures STXEc1 up 0.98%.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS fell as much as 1% before erasing losses to last
stand at 0.4% higher while Japan's Nikkei .N225 slumped 0.7%.
Oil prices plunged again after a shocking fall earlier this
week in U.S. crude futures prices CLc1 to negative levels,
hurting anyone saddled with a glut of the commodity.
"Until we see an end in the demand destruction by
coronavirus, markets will remain nervous about the possibility
of U.S. prices hitting negative levels," said Tatsufumi Okoshi,
senior commodity analyst at Nomura Securities.
"No U.S. producers will be making money at current price
levels. Some oil producing producers in the Middle East may
scrape home minimum cash to get by. But at national levels,
their fiscal conditions will be very severe."
International benchmark Brent futures LCOc1 dropped 14.3%
to $16.57 per barrel. So far this week, it has lost 40%.
U.S. June crude futures CLv1 dropped 4.7% to $11.03 per
barrel.
The cost of insurance against default by oil companies rose
in the credit default swap market while the U.S. dollar
pegged-Saudi riyal fell in forwards trade as speculators bet on
a devaluation.
On Wall Street, the S&P 500 .SPX lost 3.07% and the Nasdaq
Composite .IXIC , which has outperformed due to increased
demand for various internet services amid lockdowns, dropped
3.48%.
"The plunge in oil prices sparked fresh caution about the
stock market. Overnight, companies that have been seen as a
winner in the post-corona world, such as Amazon, fell. That is a
worrying sign," said Naoya Oshikubo, senior manager of research
at Sumitomo Mitsui Trust Asset Management.
Amazon AMZN.O fell 2.7% on Tuesday.
U.S. stock futures bounced back 1% in late Asian trade but
were still down 3.8% so far this week.
The five-year U.S. Treasuries yield hit a record low of
0.3010% on Tuesday and last stood at 0.3339% US5UT=RR . The
10-year notes yield stood at 0.561% US10YT=RR , near the lowest
since March 9, when panic buying drove it a record low.
The risk-averse mood offset news that the U.S. Senate on
Tuesday unanimously approved $484 billion in fresh relief for
the U.S. economy and hospitals hammered by the pandemic.
Governors of about half a dozen U.S. states pushed ahead on
Tuesday with plans to partially reopen for business but some
health officials warned doing so could trigger a new surge in
coronavirus cases - fears shared by some investors. As the difficulties of restarting the U.S. economy sank in,
U.S. Treasury yields tumbled, with the five-year note hitting a
new record low on rising prices for bonds: one of the safest
assets. In the currency market, the dollar was broadly supported as
investors fled riskier assets for the world's most liquid
currency while putting pressure on oil-linked currencies such as
the Norwegian crown NOK= and the Canadian dollar
CAD=D4 . The safe-haven yen held firm at 107.79 to the dollar JPY=
while the Swiss franc stood near five-year high against the euro
at 1.05255 franc EURCHF= .

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Global assets http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Global bonds dashboard (DO NOT USE UNTIL UPDATE FOUND) http://tmsnrt.rs/2fPTds0
Emerging markets http://tmsnrt.rs/2ihRugV
MSCI All Country Wolrd Index Market Cap http://tmsnrt.rs/2EmTD6j
The plummeting price of oil interactive https://reut.rs/39ieums
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Additional teporting by Katanga Johnson in Washington and
Herbert Lash in New York; Editing by Sam Holmes & Shri
Navaratnam)