GLOBAL MARKETS-Asian shares gain after solid U.S. data, China edges up

* Upbeat U.S. private job, service sector data lift mood
* WHO says no break-through reported on coronavirus drugs
* Mainland China shares little changed
* Asian stock markets: https://tmsnrt.rs/2zpUAr4

By Hideyuki Sano
TOKYO, Feb 6 (Reuters) - Asian stocks edged up on Thursday,
cheered by record closes in Wall Street benchmarks after
encouraging economic data, although investors kept a wary eye on
the developments in the coronavirus outbreak.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS gained 1.14% while Japan's Nikkei .N225 rose
2.07%.
Mainland Chinese shares edged up, with the bluechip CSI300
index .CSI300 up 0.87%, helped by policymakers' efforts to
prevent heavy selling, including liquidity injections and de
facto restrictions on selling. "It is difficult for investors to sell Chinese shares now
given the authorities' stance is very clear," said Naoki
Tashiro, president of TS China Research.
"Still, until the spread of the virus stops, market
stabilisation steps won't completely change investor
psychology."
On Wall Street, far from the epicentre of the outbreak, the
mood was brighter as the S&P 500 .SPX gained 1.13% to a record
close of 3,334.69 while the Nasdaq Composite .IXIC added 0.43%
to 9,508.68, also a record high.
The ADP National Employment Report showed private payrolls
jumped 291,000 jobs in January, the most since May 2015, while a
separate report showed U.S. services sector activity picked up
last month. Both indicators suggest the economy could continue
to grow this year even as consumer spending slows.
Traders also cited vague rumours of a possible vaccine or a
drug breakthrough for the coronavirus as a trigger for
Wednesday's stock rally, although they also said such catalysts
were likely to simply be an excuse for short-covering.
The World Health Organization played down media reports on
Wednesday of "breakthrough" drugs being discovered to treat
people infected with the new coronavirus. Another 73 people on the Chinese mainland died on Wednesday
from the virus, the highest daily increase so far, bringing the
total death toll to 563, the country's health authority said on
Thursday. "Despite all the efforts by the Communist Party, the virus
is becoming a major global disaster. Considering workers usually
start to return to hometown about a week before the Lunar New
Year, many patients must have left Wuhan before its lockdown on
Jan. 23," TS China Research's Tashiro said.
Statistics from China indicate that about 2% of people
infected with the new virus have died, suggesting it may be
deadlier than seasonal flu but less deadly than SARS, another
reason investors remained relatively calm. "The coronavirus is continuing to spread so we need to
remain cautious. But markets now appear to think that there will
be a quick economic recovery after a short-term slump," said
Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset
Management.
The 10-year U.S. Treasuries yield rose back to 1.654%
US10YT=RR from a five-month low of 1.503% set last Friday.
In the currency market, the safe-haven Swiss franc and the
yen retreated.
The franc CHF=EBS eased to 0.9738 franc per dollar, having
lost 0.4% on Wednesday.
The yen stepped back to 109.98 yen JPY= , compared with a
three-week high of 108.305 hit on Friday.
The euro stood flat at $1.0998 EUR= , having shed 0.4% in
the previous session.
In commodities, U.S. West Texas Intermediate (WTI) crude
CLc1 gained 2.17% to $51.85 per barrel, extending its rebound
from a 13-month low of $49.31 touched on Tuesday.
Still it is down about 15% so far this year.
Copper, considered a good gauge on the health of the global
economy because of its wide industrial use, showed some signs of
stabilisation although it remained depressed overall.
Shanghai copper SCFc1 extended its rebound into the third
day, rising 1% from 33-month low hit earlier this week. It is
about 5% below its levels just before the start of Lunar New
Year holidays.
"One has to wonder whether China can meet its trade
agreement with the U.S. to increase imports by $200 billion,
which looked very difficult to begin with," said a manager at a
U.S. asset management firm, who declined to be named because he
is not authorised to speak about China.
"Before the outbreak, a mini goldilocks market was
everyone's consensus. But we have to see whether we need to
change such a view," he added.

(Editing by Sam Holmes)