GLOBAL MARKETS-Asian shares mixed as corporate earnings loom

By John McCrank
NEW YORK, July 7 (Reuters) - Asian stocks were set for a
mixed open on Wednesday, as an increase in new coronavirus cases
in some parts of the world cast doubts over the economic
recovery, leading some investors to cash in on recent gains
ahead of earnings season.
Australian S&P/ASX 200 futures YAPcm1 lost 0.50% in early
trading, while Japan's Nikkei 225 futures NKc1 added 0.11%,
and Hong Kong's Hang Seng index futures .HSI HSIc1 rose
0.39%.
U.S. stocks fell on Tuesday, halting a five-day winning
streak by the benchmark S&P 500 index, its longest this year,
which had been driven by better-than-expected economic data.
Following the recent rally, the declines looked like a
consolidation, with the markets largely in "wait and see mode"
ahead of the upcoming earnings session, said NAB economist Tapas
Strickland.
"It will be important to watch the number of U.S. deaths in
coming weeks and whether greater questions will be asked about
the extent of necessary restrictions," he added.
The United States reported tens of thousands of new
coronavirus infections, prompting New York to expand its travel
quarantine for visitors from three more states, while Florida's
greater Miami area rolled back its reopening. The surge has made business owners "nervous again," Atlanta
Federal Reserve Bank President Raphael Bostic said on Tuesday.
"There is a real sense this might go on longer than we have
planned for," he said. Coronavirus cases were also on the rise in the Australian
state of Victoria, which led to lockdown measures being
reimposed in Melbourne, the country's second-biggest city.
"The second wave of infection will see Victorian economic
activity fall sharply and it will continue to lag the rest of
Australia," said NAB economist Kaixin Owyong.
Victoria makes up around a quarter of Australian economic
activity, she said.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS closed 0.78% lower.
The Dow Jones Industrial Average .DJI fell 1.51%, the S&P
500 .SPX lost 1.08%, and the Nasdaq Composite .IXIC dropped
0.86%.
E-mini futures for the S&P 500 EScv1 were up 0.13%.
Concern over the rise in new coronavirus cases helped lift
safe-haven assets, including the U.S. dollar, which was 0.15%
higher at 96.889, against a basket of currencies. The benchmark 10-year US10YT=RR yield was down at 0.6397%,
from 0.648% late on Monday.
Spot gold XAU= jumped 0.7% to $1,796.08 per ounce.