GLOBAL MARKETS-Asian stocks fall, safe havens up as China virus fears grow

* 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 supply glut

By Stanley White
TOKYO, Jan 23 (Reuters) - Asian shares and U.S. stock
futures edged lower 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.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS fell 0.13%. Australian shares .AXJO were down
0.75%, while Japan's Nikkei stock index .N225 slid 0.64%.
The Chinese yuan nursed losses in offshore trading, while
safe-havens such as the Japanese yen and the Swiss franc held
onto gains hours before a travel blockade of the Chinese city at
the centre of the outbreak starts later on Thursday.
Oil futures extended declines 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.
Deaths from China's new coronavirus rose to 17 on Wednesday,
with more than 540 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 0.05% 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.
The previously unknown coronavirus strain is believed to
have emerged late last year from illegally traded wildlife at an
animal market in the central Chinese city of Wuhan. 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.
Shares of Australia's Qantas Airways Ltd QAN.AX fell
0.66%, while Japan Airlines Co 9201.T fell 1.28% and rival air
carrier ANA Holdings Inc 9202.T declined 0.86%.
In the offshore market, the yuan CNH=D3 traded at 6.9134
per dollar, close to a two-week low.
The yen JPY=EBS rose 0.2% to 109.62 versus the dollar,
while the Swiss franc CHF=EBS traded at 0.9680 against the
greenback.
Gold XAU= , another asset that is often bought as a safe
haven, advanced 0.28% to $1,563.03 per ounce. GOL/
The yield on benchmark 10-year Treasury notes US10YT=RR
fell slightly to 1.7586% in Asia as some investors sought the
safety of government debt.
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.
U.S. crude CLc1 dipped 1.06% to $56.14 a barrel. 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

(Editing by Shri Navaratnam)