GLOBAL MARKETS-Asian shares wilt, oil tumbles as China virus spreads

* Asian stock markets: https://tmsnrt.rs/2zpUAr4
* Risk assets off to weak start in Asia
* Worries about China virus before Lunar New Year
* Oil extends decline on worries about virus, supply glut

By Stanley White
TOKYO, Jan 23 (Reuters) - Asian shares and U.S. stocks fell
on Thursday as investors remained anxious about the spread of a
new flu-like virus in China just as millions prepared to travel
for the Lunar New Year.
Oil futures tumbled to seven-week lows as the contagion was
expected to hit airline travel, while the International Energy
Agency's warning of an oil surplus and a larger-than-expected
increase in U.S. crude inventories re-kindled fears of excess
supply.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS fell 0.45%.
Blue chip Chinese shares .CSI300 slumped 0.91%. Australian
shares .AXJO were down 0.57%, while Japan's Nikkei stock index
.N225 slid 0.6%.
The Chinese yuan fell toward a two-week low, while
safe-havens such as the Japanese yen, gold, and U.S. Treasuries
rose before a travel blockade of the Chinese city, Wuhan, at the
centre of the outbreak starts later on Thursday.
Deaths in China from the new coronavirus rose to 17 on
Wednesday, with nearly 600 cases confirmed. The outbreak has
evoked memories of Severe Acute Respiratory Syndrome (SARS) in
2002-2003, another coronavirus which broke out in China and
killed nearly 800 people in a global pandemic. "Markets are expressing concern about the growth outlook,"
said Michael McCarthy, chief market strategist at CMC Markets in
Sydney.
"The coronavirus has introduced some caution. There is no
reason to expect a global pandemic now, but there is some
repricing in financial markets."
U.S. stock futures ESc1 fell 0.02% on Thursday in Asia.
The S&P 500 .SPX eked out a 0.03% gain on Wednesday, but
the overall tone on Wall Street was mixed as investors assessed
the impact of the virus and braced for the corporate earnings
season.
Cases have been detected in Beijing, Shanghai, Macau, Hong
Kong, Japan, and the United States. Wuhan's local government
said it would close all urban transport networks and suspend
outgoing flights as of 10 a.m. on Thursday (0200 GMT). Citizens
have been urged not to leave the city.
However, there are fears the virus could spread rapidly,
because millions of Chinese travel domestically and abroad
during the week-long Lunar New Year holidays, which start on
Friday.
Air China 601111.SS , China's flagship carrier, skidded
2.78% to the lowest in more than eight weeks. Shares of
Australia's Qantas Airways Ltd QAN.AX fell 1.55%, while Japan
Airlines Co 9201.T dropped 1.4% and rival air carrier ANA
Holdings Inc 9202.T declined 1.17%.
In the onshore market, the yuan CNY=CFXS edged down 0.1%
to 6.9160 per dollar, approaching the lowest since Jan. 10.
The yen JPY=EBS rose 0.2% to 109.64 versus the dollar,
while the Swiss franc CHF=EBS traded at 0.9679 against the
greenback.
Gold XAU= , another asset that is often bought as a safe
haven, rose 0.07% to $1,559.17 per ounce. GOL/
The yield on benchmark 10-year Treasury notes US10YT=RR
fell slightly to 1.7551% in Asia as some investors sought the
safety of government debt.
U.S. crude CLc1 fell 1.69% to $55.78 a barrel, briefly
touching the lowest since Dec. 3. Brent crude LCOc1 slumped by
1.55% to $62.26 per barrel to reach the lowest since Dec. 4.
The American Petroleum Institute said U.S. crude inventories
rose 1.6 million barrels last week, compared with analysts'
expectations for 1 million-barrel draw. EIA/S
Markets took Republican U.S. President Donald Trump's
impeachment trial in stride, as he is widely expected to be
acquitted in the Republican-controlled Senate.
Democrats accused Trump at the start of his impeachment
trial on Wednesday of a corrupt scheme to pressure Ukraine to
help him get re-elected. Trump told reporters in Switzerland the Democrats did not
have enough evidence to find him guilty and remove him from
office.

(Editing by Shri Navaratnam)