(Adds European stock futures, Chinese shares, analyst comment)
* Asian stock markets : https://tmsnrt.rs/2zpUAr4
* MSCI ex-Japan extend losses, Japan closed for public
holiday
* E-mini futures for S&P500 fall more than 1% in Asia
trading
* Gold prices surge to highest since 2013
* South Korea on high alert after virus cases surge to over
700
* Coronavirus has killed 2,442 people in China
By Swati Pandey
SYDNEY, Feb 24 (Reuters) - Global shares and oil slid on
Monday while safe-haven gold surged as the spread of the
coronavirus outside China darkened the outlook for world growth
with infections and deaths rising in South Korea, Italy and the
Middle East.
South Korea put the country on high alert while the number
of infections jumped to over 700 and deaths rose to seven. In
Italy, officials said a third person infected with the flu-like
virus had died, while the number of cases jumped to above 150
from just three before Friday. Iran, which announced its first infections last week, said
it had confirmed 43 cases and eight deaths, with most of the
infections in the Shi'ite Muslim holy city of Qom. Saudi Arabia,
Kuwait, Iraq, Turkey and Afghanistan imposed travel and
immigration restrictions on the Islamic Republic.
In a sign of panic, U.S. stock futures were sold with
E-minis for the S&P500 ESc1 falling 1.2% in early Asian trade
while Nikkei futures NKc1 slipped over 2%. EuroStoxx 50
futures declined 1.5% while futures for London's FTSE FFIc1
skidded 1%.
Asian share indexes were also a sea of red.
Australia's benchmark index slid 2.2% while New Zealand was
about 1.3% lower. .AXJO .NZ50
South Korea's KOSPI index .KS11 fell about 3%. Chinese
shares opened down with the blue-chip CSI300 index .CSI300
easing 0.6%.
That left MSCI's broadest index of Asia-Pacific shares
outside Japan .MIAPJ0000PUS off 1.6% at its lowest since early
February. Japanese markets were closed for a public holiday.
"There is lots of bad news on the coronavirus front with the
total number of new cases still rising," AMP chief economist
Shane Oliver wrote in a note.
"Of course, there is much uncertainty about the case data,
new cases outside China still looks to be trending up and the
economic flow on has further to go with the Chinese economy
likely to have contracted in the March quarter."
The virus has killed 2,442 people in China, which has
reported 76,936 cases, and slammed the brakes on the world's
second largest economy.
It has spread to some 28 other countries and territories,
with a death toll of around two dozen, according to a Reuters
tally. Economists have roundly downgraded growth forecasts for
China as well as the world as travel restrictions and lockdowns
have already hit tourism, supply chain and factory output in a
number of countries.
Oxford Economics estimated world economic output growth
would fall to nearly zero in the first half of 2020 if the
coronavirus outbreak became a global pandemic.
"MESSY DATA RELEASES"
As investors wagered central banks would step in with policy
stimulus to support economic growth U.S. Fed fund futures
0#FF: surged signalling more rate cuts later this year.
In response, the dollar fell for a second straight session
on Monday against the yen JPY= to be last at 111.48.
The dollar's losses began on Friday after data showed
American business activity stalled in February, signalling a
contraction for the first time since 2016. The manufacturing
sector also clocked its lowest reading since August. "The data was a wake-up call for the U.S. equity market,
hitherto complacent about the impact of the virus," NAB currency
strategist Rodrigo Catril said, adding it "was probably too
early to throw the towel" on the greenback.
Despite losses since Friday, the greenback rose 1.7% last
week and is still up 2.7% so far this year.
"We are likely entering a period of messy and potentially
misleading data releases," Catril said.
"The U.S. had a bad data day, but we think that is just a
taste of what is yet to come with other major economies likely
to show bad economic numbers too."
The Australian dollar, considered a liquid proxy for China
plays, was down 0.3% as it languished near an 11-year low.
The euro EUR= eased a tad to $1.0828.
That left the dollar index =USD slightly higher at 99.489.
Analysts expect the Korean won to stay on its downward
spiral against the dollar as one of the favourite risk proxies
for investors. KRW=
The won has fallen more than 4.5% on the dollar so far this
year. KRW= It was last down 0.9% at 1,217.33 after hitting its
weakest since August 2019.
In commodities, oil prices slid as investors fretted about
crude demand being pinched by the impact of the coronavirus
outbreak, while leading producers appeared to be in no rush to
curb output.
Brent crude LCOc1 slumped 3%, or $1.77, to $56.72 a barrel
while U.S. crude CLc1 dropped 2.7%, or $1.48, to $51.9 a
barrel.
U.S. gold futures GCcv1 climbed 1% to $1,665.1 an ounce.
Spot gold XAU= jumped to a seven-year high of 1,678.58 after
marking its biggest weekly gain last week since early August.
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Asia stock markets https://tmsnrt.rs/2zpUAr4
Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
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(Editing by Sam Holmes)