* Asian stock markets : https://tmsnrt.rs/2zpUAr4
* Asia ex-Japan skids from 4-mth top, S&P 500 futures dip
* Deaths from COVID-19 reached half a million on Sunday
* Bonds supported on safe haven appeal, oil slips
By Wayne Cole
SYDNEY, June 29 (Reuters) - Asian share markets began the week with a cautious tone on Monday as the relentless spread of the coronavirus finally made investors question their optimism on the global economy, benefiting safe harbour bonds and crimping oil prices.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 1.3% and further away from a four-month top hit last week. Japan's Nikkei .N225 shed 2.2% and Chinese blue chips .CSI300 0.9%.
E-Mini futures for the S&P 500 ESc1 eased 0.2%, while EUROSTOXX 50 futures STXEc1 lost 0.7%. FTSE futures FFIc1 0.9%.
Wall Street had faltered on Friday as some U.S. states reconsidered their reopening plans. The global death toll from COVID-19 reached half a million people on Sunday, according to a Reuters tally. one-quarter of all the deaths so far have been in the United States, with cases surging in a handful of southern and western states that reopened earlier.
"The increase in U.S. COVID-19 infection rates has dented momentum across markets despite the improvements in the global economy, which continues to beat most data expectations," wrote analysts at JPMorgan (NYSE:JPM) in a note.
"Our strategists remain sanguine and recommend to buy on dips but also selectivity," they added. "Traditional hedges like JPY vs USD, USD vs EM FX, gold and quality stocks are still outperforming this month. We stay overweight U.S. equities but move EM equities to neutral and stay neutral U.S. credit."
Sovereign bonds benefited from the shift to safety with yields on U.S. 10-year notes US10YT=RR falling to 0.64%, having briefly been as high as 0.96% early in June.
The U.S. dollar has generally gone in the opposite direction, rising to 97.461 against a basket of currencies =USD from a trough of 95.714 earlier in the month.
It had less luck on Monday easing back to 107.08 yen JPY= , though it remained well within the recent range of 106.06 to 107.63. The euro stood at $1.1240 EUR= having found solid support around $1.1167. USD/
It is an important week for U.S. data with the ISM manufacturing index on Wednesday and payrolls on Thursday, ahead of the Independence Day holiday. Federal Reserve Chair Jerome Powell is also testifying on Tuesday.
"U.S. economic data will reinforce that the economy is through the worst of the recession in our view," said CBA currency analyst Joseph Capurso.
"But a double-dip recession is possible if widespread restrictions are reimposed, leading to a surge in the dollar."
In commodity markets, gold held near its highest since early 2012 at $1,773 an ounce XAU= . GOL/
Oil prices slipped amid concerns the pandemic would slow the reopening of some economies and thus hurt demand for fuel. O/R
Brent crude LCOc1 futures fell 83 cents to $40.19 a barrel, while U.S. crude CLc1 lost 84 cents to $37.65.
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