GLOBAL MARKETS-Asian markets struggle to digest coronavirus spike

By Pete Schroeder
WASHINGTON, July 14 (Reuters) - Asian shares are showing a
mixed picture on Tuesday after a volatile day in U.S. equity
markets amid persistent concerns over the record number of new
coronavirus cases worldwide and signs of an economic rebound.
Australian S&P/ASX 200 futures YAPcm1 lost 0.76% in early
trading, Japan's Nikkei 225 futures NKc1 added 0.22%, and Hong
Kong's Hang Seng index futures .HSI HSIc1 rose 0.39%.
E-mini futures for the S&P 500 EScv1 rose 0.21%.
After a strong start in the United States, equity markets
sold off when California announced it was slowing the state's
reopening, shutting bars and banning indoor restaurant dining
statewide in response to a surge in coronavirus cases.
But at the same time, U.S. consumers reported being more
optimistic that the worst of their economic woes from the
pandemic were behind them, complicating the picture for
investors about the state of the world's largest economy.
"The U.S. continues to report fresh highs of daily new
infections. However, the seriousness of the disease is falling.
Hospitalisation rates...has trended down since April," said Kim
Mundy with the Commonwealth Bank of Australia in Sydney, in an
analyst note. "The upshot is the surge in infections does not
give the full story. And it suggests the U.S. is learning to
live with the disease."
Tensions also grew between the U.S. and China over disputed
claims to offshore resources throughout the South China Sea,
with U.S. officials saying China's claims were "unlawful."
The U.S. dollar =USD edged lower on Monday as investors
looked to U.S. corporate earnings and upcoming retail data to
gauge whether guarded optimism on the economic outlook was
justified. Spot gold XAU= dropped 0.1% to $1,801.30 an ounce.
On Monday, the S&P 500 .SPX dropped 0.94% after touching
its highest level since Feb. 24 earlier in the trading day. The
tech-heavy Nasdaq Composite .IXIC dropped 2.13%, driven by
declines in some outperforming big names, including Amazon
AMZN.O and Microsoft MSFT.O . The Dow Jones
Industrial Average .DJI rose 0.04%.
MSCI's gauge of stocks across the globe .MIWD00000PUS
briefly touched its highest level since February, before ending
down 0.29%.
Growing concerns over the coronavirus spread and simmering
U.S.-China tensions also weighed on oil. Brent LCOc1 futures
fell 52 cents, or 1.2%, to settle at $42.72 a barrel.
In upcoming data, China is set to report Tuesday its trade
numbers, with slump in China's exports likely easing in June
while imports contracted less sharply on higher crude oil and
commodities purchases, according to a Monday Reuters poll.
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