GLOBAL MARKETS-Stocks hold steady but virus anxiety lingers as millions travel for Lunar New Year break

* European shares set to bounce back
* Asian stock markets: https://tmsnrt.rs/2zpUAr4
* China, other Asian markets closed for Lunar New Year
holiday
* Too early to declare China virus a global emergency -WHO

By Tomo Uetake
TOKYO, Jan 24 (Reuters) - Asian shares steadied on Friday in
holiday-thinned trade for the Lunar New Year, despite fears that
a new coronavirus from China could spread rapidly as millions of
people travel over the week-long break.
Most markets had stabilized overnight, as investors took
some solace from the World Health Organisation (WHO) labelling
the outbreak an emergency for China, where 25 people have died
and more than 800 have been infected, but not, as yet, for the
rest of the world. European shares, which had closed before the WHO
announcement, were expected to rebound on Friday, with major
European stock futures STXEc1 FDXc1 FFIc1 trading up around
0.7-0.9%, with a more positive tone.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS rose 0.12%, while Japan's Nikkei .N225 gained
0.13% and Australian stocks .AXJO added a marginal 0.04%.
Trade in Asia was already slowing down for the Lunar New
Year holiday, with financial markets in mainland China, Taiwan
and South Korea closed on Friday.
Hong Kong's Hang Seng .HSI ended up 0.15%, trading for a
half-day due to the holiday.
The stance taken by WHO over epidemic provided at least
temporary relief to the U.S. markets. The Nasdaq Composite .IXIC rose 0.20% to a record closing
high, while the S&P 500 .SPX added 0.11% and the Dow Jones
Industrial Average .DJI eased 0.09%. .N/C
"Investors are still worried that the outbreak of
coronavirus will dampen consumption in China when the Chinese
economy has been already cooling down," said Yasuo Sakuma, chief
investment officer at Libra Investments in Tokyo.
Indeed, National Australia Bank's research team tentatively
estimated China's GDP growth for the first quarter could be hit
by around 1 percentage point by this deadly coronavirus
outbreak.
"The impact on Chinese growth could be significant given the
outbreak coincides with the Chinese New Year," said Tapas
Strickland, NAB's director of economics in Sydney.
"Measures to isolate the outbreak has meant 26 million
people in cities or near urban areas are in lockdown or have
limited travel. New Year festivities are also curbed in Beijing
and Macau."
In the currency market, the concerns about the virus
supported the safe-haven yen.
The Japanese currency traded at 109.52 per dollar JPY= ,
having risen to a two-week high of 109.26 yen on Thursday.
The euro EUR= fell to a seven-week low versus the dollar
of $1.1036 overnight after the European Central Bank left its
policy rates unchanged but President Christine Lagarde struck a
slightly dovish tone than some had expected.
The common currency last stood at $1.1048, down 0.10% on the
day.
The offshore yuan CNH= softened to 6.932 per dollar, one
day after hitting a 2-1/2 week low of 6.942 yuan.
Coronavirus fears continued to weigh on commodity prices.
Oil prices staged a slight rebound on Friday, helped by a
decline in U.S. crude stockpiles, but were on track to fall up
to 5% for the week on worries that the China coronavirus may
curb travel, fuel demand and economic prospects. O/R
Brent crude futures LCOc1 rose 0.40% to $62.29 a barrel
after falling 1.9% the previous session. U.S. West Texas
Intermediate (WTI) futures CLc1 were 0.43% higher at $55.83 a
barrel. The contract fell 2% on Thursday and was down 5% for the
week.
Elsewhere, copper prices fell to their lowest in more than
six weeks overnight. MET/L

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WHO says 'bit too early' to declare coronavirus a global
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