(Corrects typographical error in headline)
* Japanese shares, U.S. stock futures reverse losses
* European stock futures indicate strong market open
* Interbank futures imply rate cuts by Fed, RBA
* Equities suffered worst week since 2008
* Asian stock markets: https://tmsnrt.rs/2zpUAr4
*
By Anshuman Daga and Swati Pandey
SINGAPORE/SYDNEY, March 2 (Reuters) - Asian shares regained
a measure of calm on Monday as markets bounced after a searing
sell-off last week and as investors pinned hopes on a likely
coordinated global monetary response to help soften the economic
blow of the coronavirus outbreak.
European stock futures also showed a higher opening for
European markets, tracking gains in Asia.
The positive turn came after global markets took a pounding
last week as the virus spread across many countries. Pandemic
fears wiped out more than $5 trillion from a major global equity
index and stocks logged their biggest falls in more than a
decade.
The sheer scale of losses led financial markets to price in
policy responses from the U.S. Federal Reserve to the Bank of
Japan and the Reserve Bank of Australia. L4N2AU0ZB]
Futures now imply a full 50 basis point cut by the Fed in
March 0#FF: while Australian markets 0#YIB: are pricing in a
quarter-point cut at the RBA's Tuesday meeting.
On Monday, investors were encouraged by comments from Bank
of Japan Governor Haruhiko Kuroda who said the central bank
would take necessary steps to stabilise financial
markets.[ "Markets being what they are, they are usually responsive to
the prospect of monetary accommodation. The question is, how
long this lasts and how much of a boost it gives us," said Rob
Carnell, head of Asia-Pacific research at ING.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS rose 1%, up for the first time in four sessions
and recovering from a fall of about 0.3% in early trade. But the
uptick barely made up for a 10 percent tumble last week.
Euro Stoxx 50 futures STXEc1 and German DAX futures
FDXc1 both rose 1.6%, while FTSE futures FFIc1 rallied 2.1%.
E-minis for the S&P500 ESc1 , which were down more than 1%
at one point, were last up 0.5%.
GLOBAL DISRUPTION
The rapid spread of the coronavirus has led businesses
globally to curb travel, send workers home and cancel events,
hitting stocks in the aviation, gambling and tourism sectors.
The disruption to global supply chains and productivity has
darkened the outlook for a world economy already struggling with
the fallout of the U.S.-China trade war.
"There's no policy out there, frankly, that is going to be
sufficiently large to offset the nature of what's coming in
terms of the virus. So we have to keep watching these new case
numbers until these show signs of levelling off," said ING's
Carnell.
Japan's Nikkei .N225 , which opened 1.3% lower at a six
month trough, climbed 0.95%. China's blue-chip index CSI 300
index .CSI300 gained 3.3%.
Australia's S&P ASX/200 .AXJO closed down 0.8%, but were
well above the day's lows.
Benchmark U.S. 10-Year Treasuries hit a fresh record low of
1.0300% US10YT=RR .
Analysts said a sustained market recovery depended on the
rate of new coronavirus infections slowing outside China.
The epidemic, which began in China, has killed almost 3,000
people worldwide as authorities race to contain infections in
Iran, Italy, South Korea and the United States.
In a sign of the crippling impact of the virus on
businesses, the country's factory activity suffered the sharpest
contraction on record in February. "Policymakers face two trade-offs at this juncture: between
virus control and production resumption, and between reviving
activity and maintaining a disciplined approach to easing," Sin
Beng Ong, an economist at JPMorgan said in a report.
"Policy support will be bolstered, but we believe the
government will refrain from large-scale demand-side stimulus."
Leaders in Europe, the Middle East and the Americas rolled
out bans on big gatherings and stricter travel restrictions over
the weekend as cases of the new coronavirus spread. Last week, bonds soared and stocks plunged in a risk-off
trade. The S&P 500 index .SPX fell 11.5%, only its fifth
double-digit weekly percentage drop since 1940. .N
On Monday, oil prices rebounded more than $1 a barrel on
hopes of a deeper cut in output by OPEC after earlier hitting
multi-year lows. O/R
Brent crude last traded at $51.3 per barrel LCOc1 and U.S.
crude CLc1 at $46.1 per barrel.
In currencies, investors sought shelter in the Japanese yen,
which jumped to a 20-week high on the dollar in tandem with the
massive shift in money markets to price U.S. rate cuts. FRX/
The yen was last down 0.2% at 108.28,
The Aussie AUD=D3 flirted near an 11-year low at $0.6527,
while the New Zealand dollar NZD=D3 slipped 0.3% to $6233.
The euro EUR=D3 was up 0.2% at $1.1045.
That left the dollar index =USD barely changed at 97.976.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
World markets performance https://tmsnrt.rs/37RShMa
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Additional rporting by Swati Pandey in Sydney
Editing by Shri Navaratnam)