* Asian shares, U.S. stock futures edge up after Edison
Research
calls Arizona for Biden
* European futures point to lower open amid rising virus
cases
* China shares tumble on U.S. investment restrictions, bond
defaults
* Asian stock markets: https://tmsnrt.rs/2zpUAr4
By Andrew Galbraith
SHANGHAI, Nov 13 (Reuters) - Asian shares eked out gains on
Friday and U.S. stock futures turned higher after U.S.
president-elect Joe Biden was projected to win the battleground
state of Arizona, cementing his win for the office.
The projection by Edison Research dealt another blow to
President Donald Trump's struggling effort to overturn the
results of the Nov. 3 presidential election. S&P 500 e-mini futures EScv1 inched out of negative
territory on the news but without much conviction, and were last
up just 0.03%.
European futures remained resolutely dour, with pan-region
Euro Stoxx 50 futures STXEc1 down 0.67%, German DAX futures
FDXc1 down 0.6% and FTSE futures FFIc1 off 1.1%.
That came after selloffs in the United States and Europe on
Thursday as investors feared the economic impact of accelerating
coronavirus infections.
The United States has reported fresh daily records for new
COVID-19 case hospitalisations this week, prompting cities and
states, including Chicago, Detroit and California, to re-impose
public health restrictions. European officials have also warned against complacency and
said measures to control infections must continue despite hopes
that vaccines under development could help to slow the spread of
the novel coronavirus. U.S. Federal Reserve Chair Jerome Powell said on Thursday
during a discussion with other central bankers that progress in
developing a coronavirus vaccine was welcome news but that
near-term economic risks remain as infections accelerate,
underscoring the likely need for additional government stimulus.
MSCI's broadest index of Asian shares outside Japan
.MIAPJ0000PUS edged up 0.1%, reversing earlier losses. For the
week it rose about 0.7%.
But apart from a 0.71% gain in Seoul's Kospi .KS11 , most
major regional indexes were lower on Friday.
Australian shares .AXJO lost 0.2%, the Hang Seng .HSI
was 0.48% lower and Chinese blue-chips .CSI300 slumped 1.57%,
dragged lower by the Trump administration's decision to ban U.S.
investments in firms linked to the Chinese military, and by a
series of high-profile bond defaults by state-owned
enterprises.
Japan's Nikkei 225 .N225 fell 0.57%.
Some investors saw a buying opportunity in the market
weakness.
"My view is this is the dark just before dawn," said Michael
Frazis, portfolio manager at Frazis Capital Partners in Sydney.
"You've got the second wave of coronavirus, new sets of
shutdowns, clear problems around the world, travel dropping off
again... But at the same time, we have the strongest possible
evidence that we do have a vaccine..."
"We think this is all actually very positive and it's
actually a good time to be investing in markets," he said.
Frazis said many risks nevertheless remained for short-term
traders amid ongoing uncertainty over issues such as fresh U.S.
stimulus.
On Thursday, top Democrats in the U.S. Congress urged
renewed negotiations over a multitrillion-dollar coronavirus aid
proposal, but the top Republican immediately rejected their
approach as too expensive, continuing a months-long impasse.
Wall Street dropped on Thursday in a broad sell-off.
The Dow Jones Industrial Average .DJI fell 1.08%, pulled
lower by industrial and financial companies sensitive to
economic growth. The S&P 500 .SPX lost 1.00% and the
technology-heavy Nasdaq Composite .IXIC dropped 0.65%.
U.S. Treasury yields also sank on Thursday, weighed down by
the persistent rise in coronavirus cases and data showing
inflation remained benign in the world's largest economy. The
U.S. yield curve, viewed in part as a gauge of risk appetite,
also flattened. On Friday, U.S. yields continued to tick lower, with
benchmark 10-year Treasury notes US10YT=RR yielding 0.8701%,
compared to a Thursday close of 0.886%.
"Bond yields, which had been flirting with the 1.0% level in
terms of the U.S. 10Y Treasury, have ... snapped back sharply in
terms of yield," Rob Carnell, Asia Pacific head of research at
ING said in a note.
"That move most likely got a further nudge from the
softer-than-expected U.S. inflation data for October which were
released yesterday, and which tally with a weaker economic
reality."
Rising risk aversion lifted the safe-haven yen, with the
dollar dropping 0.25% against the Japanese currency to 104.86
JPY= . The euro EUR= was a touch higher at $1.1809 and the
dollar index =USD ticked lower to 92.926.
An unexpected rise in U.S. crude stockpiles exacerbated
virus-linked economic fears in commodity markets, pushing U.S.
crude CLc1 1.85% lower to $40.36 per barrel. Global benchmark Brent crude LCOc1 dropped 1.47% to
$42.89.
Spot gold XAU= gained 0.18% to $1,879.06 per ounce. GOL/
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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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