* Stock slide slows, but losses grow
* Nikkei down more than 1%, Hong Kong down 1%, E-minis drop
* U.S. crude at one-year low
* Asian stock markets: https://tmsnrt.rs/2zpUAr4
By Tom Westbrook
SINGAPORE, Feb 27 (Reuters) - Oil and Asian share markets
extended losses on Thursday as the rapid global spread of the
coronavirus kept investors on edge and seeking safety in gold
and bonds.
Rising fears of a pandemic, which U.S. health authorities
have warned is likely, had already wiped more than $3.6 trillion
from global stock markets by Wednesday's close. China accounts for about 96% of cases and has instituted
dire containment methods that have paralysed global supply
chains.
But most new infections are now being reported elsewhere,
with news on Thursday of a jump in cases in South Korea
accompanied by a warning that the virus may be spreading in
California. South Korea reported 334 new cases on Thursday, its largest
daily rise since its first case was confirmed on Jan. 20. China
reported 433 new infections. MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS fell 0.5% and is down more than 4% for the week.
Australia's S&P/ASX 200 .AXJO dropped 1% by lunchtime and
has lost 7% this week. Japan's Nikkei .N225 fell 1.7% to its
lowest since October. The Hang Seng .HSI fell 1%. Gold climbed
0.7% XAU= .
"The market was complacent until last week as central banks
and governments were at the rescue," said Desh Peramunetilleke,
head of microstrategy at Jefferies in Hong Kong.
"The rising infection cases beyond Chinese shores has
certainly raised the pandemic risk," he said. "The current
earnings estimates do not yet factor in such risk and are
therefore vulnerable to further downgrades."
A show of confidence from President Donald Trump, who sought
to play down the risks to the United States at a White House
press conference, offered little solace to traders focused on
the virus' spread. U.S. stock futures ESc1 fell as far as 1% as he spoke,
while European stock futures STXEc1 fell 2% in Asian trade,
suggesting a possible catch-up drop in stocks there.
Fresh record-low yields on benchmark 10-year U.S. Treasuries
overnight, and the morning's firm demand for dollars, yen and
Swiss francs underscored the worried mood. US/ GOL/
The only bright spot, ironically, was China's stock market,
which steadied in relief that domestically, at least, the
outbreak appears to be under control. .SS
SHRINKING CHINA
The virus has driven an enormous flight of assets out of
Asia as investors try to isolate themselves from both the
outbreak itself and the cost of what has now been more than a
month of paralysis in the world's second-biggest economy.
New Zealand's government said on Thursday it might need to
pump money into its economy, where China accounts for about a
quarter of exports, should the fallout cause a global recession.
Capital Economics now expects Chinese growth to contract
this year.
"The economic risks from extended disruption are
non-linear," Capital's chief Asia economist and its senior China
economist, Mark Williams and Julian Evans-Pritchard, said in a
note.
"The longer it continues, the more likely it is that some
firms won't be able to pay workers, and will have to either cut
pay, lay people off or shut down altogether."
The latest wave of selling has already driven the
China-sensitive Australian dollar to a new 11-year low and
pushed U.S. oil to a one-year trough, where they mostly sat on
Thursday. FRX/
Last at 1.3088%, the yield on benchmark U.S. 10-year
Treasuries is less than one basis point firmer than an all-time
low hit overnight.
U.S. crude CLc1 made a fresh one-year low of $47.84 per
barrel in Asian trade, while gold XAU= rose to $1,649.78 per
ounce. O/R