GLOBAL MARKETS – Asian stocks, oil hit by coronavirus risks to the outlook

* Asian stock markets: tmsnrt.rs/2zpUAr4

* Risk aversion resurfaces as virus concerns return

* Increasing infections in India are causing the energy markets to run wild

* Bond traders eagerly await the 20-year Treasury auction

TOKYO, April 21 (Reuters) – Asian stocks and US stock futures fell Wednesday as concerns about a resurgence of coronavirus cases in some countries cast doubt on the strength of global growth and crude oil demand.

European stocks looked promising, however, with Euro Stoxx 50 futures at 0.28%, German DAX futures at 0.25% and UK FTSE futures at 0.15%.

MSCI’s widest index of Asia-Pacific stocks outside Japan fell 1.08%. Australian stocks fell 0.56%, but stocks in China offset early losses and rose 0.29% on positive gains from healthcare and banking.

Shares in Tokyo fell 1.95% due to the increasing likelihood that Tokyo, Osaka and surrounding areas will lock up due to a new wave of coronavirus infections.

S&P 500 e-mini stock futures also declined 0.18%.

Crude futures extended its declines from a month high following speculation that coronavirus restrictions in India, the world’s third largest oil importer, will hurt energy demand.

Recent optimism about rising vaccination coverage in the United States, Britain and Europe is shifting to concerns that record coronavirus infections in India and tightening travel restrictions will hold back the global economy.

“Renewed concerns about the global economic recovery weighed on commodity prices and commodity currencies. Many countries around the world, such as India and Brazil, have set new records for infections and deaths, ”analysts from the Commonwealth Bank of Australia said in a research note.

“As long as the virus persists, there is a risk that virus mutants will develop and spread to other countries.”

Falls in Asian stocks followed a gloomy day on Wall Street. The Dow Jones Industrial Average fell 0.75%, the S&P 500 lost 0.68% and the Nasdaq Composite fell 0.92% Tuesday as investors sold airlines and travel-related stocks for fear of a slowed recovery in global tourism.

Some tech stocks and companies benefiting from the stay-at-home demand could find themselves under further pressure after Netflix Inc reported disappointing subscriber growth for its movie streaming service, which dropped its shares 11% in off-hours trading.

The MSCI index of global equities fell 0.3%.

US crude oil fell 0.69% to $ 62.24 a barrel, while Brent crude oil fell 0.59% to $ 66.18 a barrel.

India, the second most populous country in the world, reported its worst daily COVID-19 death toll on Tuesday, with large swaths of the country now shut down. India’s financial markets were closed on Wednesday due to a public holiday.

The Norwegian krone fell for a second session on Wednesday, but the Canadian dollar and Mexican peso remained stable. Analysts say more declines for major oil exporters’ currencies are likely if energy prices continue to fall.

Against a basket of six major currencies, the dollar index traded near a seven-week low, haunted by a dip in US Treasury yields as some investors sought security to hold government debt.

Investors will keep a close eye on an auction of 20-year government bonds later on Wednesday, which will be an important indicator of global demand for fixed income.

Ahead of the auction results, the yield on 10-year benchmark Treasury bonds was 1.5626%, close to its six-week low. The yield on 20-year government bonds was 2.1481%, close to a seven-week low.

In a sign of increasing risk aversion, spot gold traded at $ 1,783.39 an ounce, close to its seven-week high reached Monday.

Reporting by Stanley White; Editing by Lincoln Feast and Kim Coghill

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