* Virus surges in U.S., new restrictions considered
* AxJ down 0.7%, falls over 1% in Japan and Australia
* U.S. stock futures down 0.4%; dollar steady
* Asian stock markets: https://tmsnrt.rs/2zpUAr4
By Tom Westbrook
SINGAPORE, June 25 (Reuters) - Asian stocks posted their biggest drop in eight sessions, bonds rose and the U.S. dollar was firm on Thursday as surging U.S. coronavirus cases and an International Monetary Fund downgrade to economic projections knocked confidence in a recovery.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.7%, Tokyo's Nikkei .N225 slumped 1.1% and Australia's ASX 200 .AXJO tumbled 2.1%.
U.S. stock futures ESc1 declined 0.4%, suggesting Wednesday's Wall Street slide might have further to run. In Europe, however, where strong data has supported risk appetite this week, futures were only marginally in the red.
German DAX futures FDXc1 were down 0.1% and EuroSTOXX 50 futures STXEc1 were off 0.3%. Britain's FTSE futures FFIc1 fell 0.4%.
Florida, Oklahoma and South Carolina reported record increases in new cases on Wednesday. Seven other states had record highs earlier in the week and Australia posted its biggest daily rise in infections in two months. governors of New York, New Jersey and Connecticut ordered travellers from eight other states to quarantine on arrival, a worry for investors who had mostly been expecting an end to pandemic restrictions. DIS.N has delayed the re-opening of theme parks and resorts in California, while Texas is facing a "massive outbreak" and considering new localised restrictions, Governor Greg Abbott said in a television interview.
Australian airline Qantas QAN.AX said on Thursday it doesn't expect sizeable international operations until at least July 2021, as the carrier announced plans to sack a fifth of its workforce and raise $1.3 billion to stay afloat. International Monetary Fund said it now expects a deeper global recession, with output to shrink 4.9% this year, much sharper than the 3% contraction predicted in April. is a little bit of reality bites coming," said Damian Rooney, senior institutional salesman at stockbroker Argonaut in Perth.
"I don't think there was a particular straw that broke the camel's back, but people are a little bit twitchy - there are a lot of reasons to be pretty cautious."
The dollar clung on to broad overnight gains which had lifted it from near a two-week low. FRX/
Yields on benchmark 10-year U.S. Treasuries US10YT=RR fell to a ten-day low of 0.6692%. Markets in Hong Kong and mainland China were closed for public holidays on Thursday.
HANDBRAKE
Anxiety is likely to remain heightened ahead of U.S. data, including jobless claims figures due at 1230 GMT, as well as the latest coronavirus numbers. Confidence could be dented by disappointment on either count.
"Any improvement in jobs might be counteracted if there is another pickup in the case load in the United States," said Kyle Rodda, market analyst at brokerage IG in Melbourne.
"It's a potential handbrake on the growth rebound story."
Bank of England chief economist Andy Haldane is also due to speak about the future of society at 1700 GMT. Haldane argued against last week's increase to the bank's bond-buying programme. top of virus concerns, worrying signals on the trade front and political uncertainty have unnerved investors.
The United States has added items valued at $3.1 billion to a list of European goods eligible to be hit with import duties. Trump administration has determined that China's Huawei and video surveillance company Hikvision 002415.SZ , are owned or controlled by the Chinese military, laying the groundwork for sanctions and fresh Sino-U.S. tension. has stalled a rally in riskier currencies, and pushed the Australian dollar AUD=D3 under 69 cents and had the kiwi NZD=D3 stuck around 64 cents. AUD/
Gold XAU= steadied at $1,761.85 an ounce. GOL/
U.S. crude futures CLc1 fell by 26 cents a barrel or 0.7% to $37.75 and Brent crude futures LCOc1 fell 0.8% to $39.99.
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