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REFILE-GLOBAL MARKETS-Global stocks retreat on rising second wave fears

Published 18/06/2020, 12:39 pm
© Reuters.
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(Corrects day in paragraph 1)

* S&P 500 futures, MSCI ex-Japan Asia shares down more than 1%

* Investors fret over rise in infections in U.S, China

* Australian dollar hit by weak local jobs data

* Asian stock markets: https://tmsnrt.rs/2zpUAr4

By Hideyuki Sano and Katanga Johnson

TOKYO/WASHINGTON, June 18 (Reuters) - Asian stocks and Wall Street futures fell on Thursday as spiking coronavirus cases in some U.S. states and China crushed hopes of a quick global economic comeback from the pandemic.

S&P 500 mini futures EScv1 fell 1.2% in early Asian trade while MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS lost as much as 1%.

Japan's Nikkei .N225 lost 1.3% while in mainland China, bluechip CSI300 shares .CSI300 shed 0.1% in early trade.

On Wall Street, the S&P 500 .SPX lost 0.36% on Wednesday but tech-heavy Nasdaq .IXIC added 0.15% due to hopes of increased demand for various online services due to the epidemic.

Several U.S. states including Oklahoma, where President Donald Trump plans a campaign rally on Saturday, reported a surge in new coronavirus infections. daily count of infections also hit a new benchmark in California and Texas, while Florida and Arizona also recorded the second-highest daily increases.

China's capital cancelled scores of flights, shut schools and blocked off some neighbourhoods as it ramped up efforts to contain a coronavirus outbreak that has fanned fears of wider contagion. is a big shock to markets that China, which appears to have successfully quashed the disease, is seeing a second wave. And in the U.S. we see record cases in many states," said Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley (NYSE:MS) Securities.

"All this suggests that the more you re-start the economy, the more infections you have. People have thought the economy will quickly recover in July-September after dismal April-June. But that is now becoming uncertain."

Investors rushed to the safety of bonds, with the 10-year U.S. Treasuries yield US10YT=RR falling 3 basis points to 0.704%.

In the currency market, the safe-haven yen rose about 0.3% to 106.72 per dollar JPY= while the U.S. dollar also firmed against risk-sensitive currencies.

The euro dipped 0.1% to $1.1235 EUR= while the Australian dollar AUD=D4 lost 0.4% to $0.6852, also hit by worse than expected employment data.

Australia's unemployment rate jumped to the highest in about two decades in May as nearly a quarter of a million people lost their jobs due to the coronavirus pandemic-driven shutdowns. prices also dropped with U.S. crude futures CLv1 falling 1.9% to $37.49 per barrel, while international benchmark Brent LCOc1 lost 1.4% to $40.14 a barrel.

(Editing by Sam Holmes)

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