GLOBAL MARKETS-China's return to work lifts local stocks while rest of Asia trails

(Updates prices throughout, adds European and U.S. futures)
* Asian stock markets: https://tmsnrt.rs/2zpUAr4
* Asian shares fall after Friday's losses on Wall Street
* Chinese authorities make plans for businesses, schools to
reopen

By Swati Pandey
SYDNEY, Feb 10 (Reuters) - Asian shares fell on Monday as
the death toll from a coronavirus outbreak exceeded the SARS
epidemic of two decades ago, though Chinese shares gained as
authorities lifted some work and travel restrictions, helping
businesses to resume operations.
In early European trades, the pan-region Euro Stoxx 50
futures STXEc1 , German DAX futures FDXc1 and FTSE futures
FFIc1 all slipped 0.1% while U.S. stock futures were more
upbeat with e-minis for S&P 500 ESc1 adding 0.2%.
More than 900 people have so far died mainly in China's
central Hubei province as of Sunday with most of the new deaths
in the provincial capital of Wuhan, the epicentre of the
outbreak. To contain the spread, China's government had ordered
lockdowns, cancelled flights and shut schools in many cities.
But on Monday, workers began trickling back to offices and
factories though a large number of workplaces remain closed and
many white-collar workers will continue to work from home.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS reversed some of its early losses but was still
down 0.4%. Japan's Nikkei .N225 was off 0.6%, South Korea's
KOSPI .KS11 was 0.5% weaker while Australia's benchmark index
.AXJO eased a shade.
China's indexes were the only ones in the black in Asia with
the blue-chip index .CSI300 adding 0.5% and Shanghai's SSE
Composite .SSEC up 0.3%.
"Markets have turned around a bit reflecting the news that
Chinese businesses were returning to work," said James McGlew,
analyst at stockbroker Argonaut.
"Overall, I think, there is still a concern out there that
the impact from the coronavirus hasn't been fully quantified,"
he added.
"Today's (easing of restrictions) seems to be more of a
symbolic gesture rather than the government actually being on
top of the situation with this virus."
The outbreak has killed more people than the SARS epidemic
did globally in 2002/2003. The virus has also spread to at least
27 countries and territories, infecting more than 330 people
overseas.
Over the weekend, an American hospitalised in the central
city of Wuhan became the first confirmed non-Chinese victim of
the virus. A Japanese man who also died there was another
suspected victim.
Monday's losses in Asia extended from Wall Street on Friday
where the Dow .DJI fell 0.9%, the S&P 500 .SPX declined 0.5%
while the Nasdaq .IXIC lost 0.5%.
"Expect markets to be sensitive to virus headlines. In this
environment, we favour defensive positioning," ANZ economists
wrote in a note.
China's central bank has taken a raft of measures to support
the economy, including reducing interest rates and flushing the
market with liquidity. From Monday, it will provide special
funds for banks to re-lend to businesses working to combat the
virus.
Despite the measures, analysts expect the world economy to
take a hit from an expected slowdown in China.
"For now, our best guess is that the economic disruption
related to the coronavirus will cost the world economy over $280
billion in the first quarter of this year," Capital Economics
said in a note on Friday.
"If we're right, then this will mean that global (economic
output) will not grow in q/q terms for the first time since
2009."
The virus has overshadowed other market news with
better-than-expected U.S. jobs data on Friday failing to lift
sentiment.
Non-farm payrolls increased by 225,000 jobs in January, with
employment at construction sites increasing by the most in a
year amid milder-than-normal temperatures, the Labor Department
said. Euro zone bond yields fell after German industrial output
tumbled in December to notch its biggest fall since January
2009, fanning concerns about the bloc's biggest economy.
The euro EUR= staged a half-hearted bounce from four-month
lows to be last at $1.0949.
The dollar reversed losses against the yen to be up 0.1% at
109.79. JPY=
The Australian dollar AUD=D3 , considered a liquid proxy
for China plays, also jumped 0.4% to $0.66975 after briefly
hitting an 11-year low of $0.6679. It fell 0.2% last week to
clock its sixth consecutive weekly loss.
That left the dollar index .DXY flat at 98.651.
In commodities, Brent crude LCOc1 futures eased 3 cents to
$54.44 a barrel while U.S. crude CLc1 futures was flat $50.3 a
barrel.
Since Jan. 17, oil prices have fallen by 14% while copper is
down around 10%.
U.S. gold futures GCv1 inched up slightly to $1,574 an
ounce.

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Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
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