GLOBAL MARKETS-Asian shares slump, bonds rally as virus fears grow

* Asian stock markets: https://tmsnrt.rs/2zpUAr4
* Tracking the coronavirus: https://tmsnrt.rs/3aIRuz7
* Asian stocks fall; CDC warns Americans on virus
* Treasury yields remain near record lows
* Japan stocks hit by fears of Olympics cancellation
* Oil gains, but more downside risks seen

By Stanley White
TOKYO, Feb 26 (Reuters) - Asian shares fell on Wednesday as
a U.S. warning to Americans to prepare for the possibility of a
coronavirus pandemic drove another Wall Street tumble and pushed
yields on safe-haven Treasuries to record lows.
The S&P 500 .SPX and the Dow Jones Industrial Average
.DJI both shed more than 3% on Tuesday in their fourth
straight session of losses. That led MSCI's broadest index of Asia-Pacific shares
outside Japan .MIAPJ0000PUS down 1.28%. Japan was among the
worst-performing market in the region, weighed by growing
concerns the virus could cancel the Tokyo Olympics.
Yields on 10-year and 30-year U.S. Treasuries teetered near
record lows and gold rose as worries about the economic impact
of the virus outbreak boosted safe-haven assets.
The World Health Organization says the epidemic has peaked
in China, but concern that its spread is accelerating in other
countries is likely to keep investors on edge.
"What we are seeing is share markets are playing catch up,"
said Michael McCarthy, chief market strategist at CMC Markets in
Sydney.
"Other asset markets have been flashing warning signs for
weeks. A corrective bounce in equities is possible, but we still
have a lot of downward momentum."
Chinese shares .CSI300 fell 1.3%. Shares in South Korea
.KS211 , which has been rattled by a sudden rise in virus
infections, briefly hit a two-month low.
While the stock rout has been global, the recent pace of
selling in Asia has not been as severe as it has on Wall Street,
which has been hit hard by the escalation of virus cases outside
of Asia.
The S&P 500 lost $2.14 trillion in market capitalization
over the last four sessions, according to S&P Dow Jones Indices
analyst Howard Silverblatt.
U.S. stock futures ESc1 rose 0.2% in Asia on Wednesday,
but that did little to brighten the mood.
Adding to recent fears was an alert from the U.S. Centers
for Disease Control and Prevention on Tuesday warning Americans
to prepare for the spread of coronavirus in the United States,
signalling a change in tone for the Atlanta-based U.S. health
agency. The virus has claimed almost 3,000 lives in mainland China
but has spread to dozens of other countries. Of increasing
concern to investors, however, in the rising death toll in other
countries.
Drastic travel restrictions slammed the brakes on China's
manufacturing and consumer spending, and there are worries other
countries will face similar disruptions.
The virus has also hit Japan's stocks hard on rising worries
it could lead to cancellation of the 2020 Summer Olympics
scheduled to start in Tokyo in July.
Japan's Nikkei stock index .N225 slid 1.1%, while shares
of Japan's Dentsu Group Inc 4324.T , an advertising agency
deeply involved in the planning and operation of the games, fell
to a seven-year low on Wednesday. Shares of sportswear makers and other companies related to
the Olympics have also fallen recently. The yield on benchmark 10-year Treasury notes US10YT=RR
traded at 1.3421% on Wednesday in Asia, close to a record low of
1.3070% The 30-year yield US30YT=RR stood at 1.8142%, above a
record low of 1.7860%.
The decline in yields weighed on the dollar. The greenback
was last quoted at 110.25 yen, continuing a pullback from a
10-month high of 112.23 yen. JPY=EBS
The dollar traded at $1.0872 per euro EUR=EBS , off an
almost three-year high of $1.0778 reached on Feb. 20.
Spot gold XAU= rose 0.53% to $1,643.75 per ounce as
investors sought safe havens. GOL/
Oil prices recovered some recent losses in Asia, but there
are lingering concerns that expected output cuts by major oil
producers will not be enough to offset a decline in global
energy demand caused by the virus.
U.S. crude CLc1 ticked up 0.96% to $50.38 a barrel. Brent
crude LCOc1 rose 0.78% to $55.38 per barrel. The Organization
of the Petroleum Exporting Countries (OPEC) and allies including
Russia, a group known as OPEC+, have been sending signals that
they will cut output further. However, oil could come under more pressure as weekly U.S.
supply reports due later on Wednesday are expected to show a
rise in inventories, according to a Reuters poll. EIA/S