GLOBAL MARKETS-Asian stocks rise as Apple drives tech gains, virus worries ease

* Asian stock markets: https://tmsnrt.rs/2zpUAr4
* Pessimism about China virus recedes
* Treasury yield rise shows risk appetite has improved
* Oil market eyes OPEC output cuts

By Stanley White
TOKYO, Jan 29 (Reuters) - Asian shares rose on Wednesday as
better-than-expected Apple Inc earnings drove some regional tech
gains although broader confidence was capped by worries about
the economic impact of China's virus outbreak.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS rose 0.2%, ending four days of losses.
Australian shares .AXJO rose 0.41%, while Japan's Nikkei stock
index .N225 rose 0.27%.
While China's flu-like illness, which has killed more than
100, continues to keep markets on edge, there were signs
investors see the recent rout in asset prices as overdone.
Long-term U.S. Treasury yields traded above short-term
yields and the Japanese yen nursed losses as investors pulled
back from safe-havens in favour of more risky assets like
equities.
Oil futures extended gains in Asia as pessimism about the
virus eased somewhat and after OPEC sources said the cartel
wants to extend crude output cuts by three months to June,
easing concern about excess supplies.
Other investors say the growing number of travel
restrictions within China and the cancellation of international
flights could prevent a significant worsening of the virus.
"The rise in Treasury yields shows the risk-off trade is
falling out of favour," said Kiyoshi Ishigane, chief fund
manager at Mitsubishi UFJ Kokusai Asset Management Co in Tokyo.
"This is supportive of Japanese stocks. You can buy Asian
shares too, but I would not get too aggressive while Chinese
markets are closed."
U.S. stock futures ESc1 fell 0.12% in Asia on Wednesday.
The S&P 500 .SPX rose 1.01% on Tuesday, rebounding from its
worst daily decline in four months on Monday, as shares of Apple
Inc AAPL.O ahead of its fourth-quarter results.
After the market close, Apple reported better-than-expected
profits for the fourth quarter and forecast revenue in the
current quarter above Wall Street expectations. The yield on benchmark 10-year Treasury notes US10YT=RR
rose to 1.6493% versus a yield of 1.5821% on three-month
Treasury bills US3MT=RR in another sign that sentiment has
stabilised.
The yield curve briefly inverted on Tuesday when 10-year
yields fell below their 3-month counterparts for the first time
since October. An inverted yield curve has historically been an
indicator of looming recession. Markets in Asia could be subdued before the U.S. Federal
Reserve meeting later on Wednesday. The Fed is expected to
reiterate its desire to keep rates unchanged at least through
this year.
In currency markets, the safe-haven yen JPY=EBS was quoted
at 109.13 per dollar following a 0.2% loss on Tuesday. The Swiss
franc, another popular safe haven, traded at 0.9730 versus the
dollar, close to its lowest in almost three weeks.
In the offshore market, the yuan CNH=D3 rose for a second
day to 6.9605 per dollar. China's onshore markets are closed for
the Lunar New Year holidays.
U.S. crude CLc1 ticked up 0.47% to $53.73 a barrel in
Asian trading.
OPEC wants to extend current oil output cuts until at least
June from March, with the possibility of deeper reductions on
the table if oil demand in China is significantly impacted by
the spread of a new coronavirus, OPEC sources said. Sterling GBP=D3 edged lower to $1.3022, on course for its
fifth day of declines due to worries about Britain's trading
relationship with the European Union. Investors are also cautious ahead of a Bank of England
policy decision on Thursday, which many analysts say is too
close to call.