(Refiles to add dropped name in paragraph 8)
* The path ahead is uncertain - Fed Chair Powell
* The virus may never go away - WHO
* Hang Seng -1%, dollar up, gold hits 1-week peak
* Asian stock markets: https://tmsnrt.rs/2zpUAr4
By Tom Westbrook and Suzanne Barlyn
SINGAPORE/NEW YORK, May 14 (Reuters) - Asia's stock markets
fell and gold hit a one-week high on Thursday as worries about a
second wave of coronavirus infections and a dour assessment of
the way back from the head of the U.S. Federal Reserve dashed
hopes for a quick recovery.
Fed Chair Jerome Powell warned of an "extended period" of
weak economic growth, while vowing to use the U.S. central
bank's power as needed and calling for additional fiscal
spending to stem the fallout from the pandemic.
"The path ahead is both highly uncertain and subject to
significant downside risks," Powell said in a webcast
speech. Adding to investors' angst, a top World Health Organization
official said the virus may never go away. MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS fell 1%, while Japan's Nikkei .N225 fell about
0.7%.
U.S. stock futures ESc1 fell 0.2%, after the S&P 500
index's worst two-day drop in nearly a month.
Benchmark indexes in Australia .AXJO , Hong Kong .HSI ,
Korea .KS11 and China .SSEC all fell about 1%.
"We don't think the market is going to re-test the lows, but
it's probably seen its best also, so I'm expecting a
correction," said Tony Huntley, chief investment officer at
Melbourne-based fund manager Adansonia Capital.
"The issue is whether we get a second wave (of infections)
... that would be my greatest fear."
South Korea is dealing with a fresh outbreak in Seoul, while
China has re-imposed movement restrictions near its borders with
North Korea and Russia after a new outbreak was detected there.
Overnight, Wall Street's three major indexes closed lower
for a second day in a row. .N
Bonds and the dollar rallied after Powell talked down the
prospect of negative interest rates in the United States, and
extended gains on Thursday. Yields on benchmark U.S. 10-year
Treasuries US10YT=RR fell slightly to 0.6412%. US/
Oil prices slipped in spite of a surprise drawdown of U.S.
inventories and gold was firmly above the $1,700 mark, touching
a week-high $1,719.11 per ounce. O/R GOL/
Markets are looking ahead to the release of the European
Central Bank's latest economic bulletin at 0800 GMT and the
latest U.S. jobless claims data at 1230 GMT.
SLOW GOING
Equity markets have wavered since April's rally as investors
and authorities try to weigh the risks of re-starting economies
quickly against the financial ruin that lockdowns have wrought,
while worrying about a flare-up infections.
"We're going to slowly open the economy," U.S. Treasury
Secretary Steven Mnuchin told Fox News on Wednesday, as the
White House presses hard to get things moving again.
"But there is also a risk that we wait too long, there is a
risk of destroying the U.S. economy and the health impact that
that creates."
The country's top infectious disease expert, Anthony Fauci,
has warned that a premature lifting of lockdowns could lead to
additional outbreaks.
Caution is also prevailing in Europe and the Antipodes,
where restrictions are beginning to relax.
"Global markets are still licking their wounds, and while
equities remain robust, gains are slowing," said Societe General
FX strategist Olivier Korber.
"A second pandemic wave is unfortunately not a tail risk, so
the full extent of the economic damage may be underestimated,"
he said, recommending a long position in euro/kiwi EURNZD=
which has gained nearly 9% this year as market volatility has
increased.
Elsewhere the Australian dollar AUD=D3 slipped to a
one-week low of $0.6420 after the country posted its biggest
plunge in employment on record. AUD/ A rising greenback also held the kiwi NZD=D3 under 60
cents at $0.5974 and had the euro and pound under pressure.
FRX/
Brent crude LCOc1 slipped slightly to $29.06 per barrel
and U.S. crude CLc1 was steady at $25.36 per barrel.
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Global assets http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Emerging markets http://tmsnrt.rs/2ihRugV
MSCI All Country Wolrd Index Market Cap http://tmsnrt.rs/2EmTD6j
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