GLOBAL MARKETS-Asian stocks slide as Trump warns of upcoming horrors

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* Trump warns of the “horrible” days to come

* Asian stocks slide, bonds rebound, dollar companies

* Unemployed claims in the United States due at 12:30 p.m. GMT, a new record

* Asian stock markets: tmsnrt.rs/2zpUAr4

By Tom Westbrook and Herbert Lash

SINGAPORE / NEW YORK, April 2 (Reuters) – Asian stocks fell for a second session on Thursday, after a stern warning about the number of deaths from coronaviruses in the United States, investors looked into the safety of dollars and bonds and prepared for other bad news from the unemployed United States. The figures.

The largest MSCI Asia-Pacific equity index excluding Japan fell 1.2%. The Japanese Nikkei extended Wednesday’s sharp decline to 1.5%, and investors are starting to worry that stocks will recheck last month’s lows.

The markets of Hong Kong, Sydney, Shanghai and Seoul fell, although the S&P 500 futures rebounded after Wall Street fell 4% overnight.

“Tough days are ahead for our nation,” President Donald Trump told reporters in the White House on Wednesday.

“We’re going to have a few weeks, starting around now, but especially in a few days, it’s going to be horrible. “

Trump initially minimized the severity of the virus, but White House medical experts now predict that even if Americans follow unprecedented stay-at-home orders, some 100,000 to 240,000 people could die from respiratory disease.

The World Health Organization has said that the number of cases worldwide will reach 1 million and the number of deaths 50,000 in the coming days. It currently stands at 43,412.

The markets are also prepared for bad news on the economic front when weekly unemployment demand data for the United States is released at 12:30 p.m. GMT.

“The change in rhetoric from the White House has hurt some of the more optimistic traders,” said Michael McCarthy, chief broker for CMC Markets brokerage in Sydney, as optimism about local stimulus measures dwindled rapidly.

The Australian benchmark ASX 200 fell 2.6%, mainly due to falling bank values ​​after the New Zealand central bank ordered the suspension of bank dividends – hitting Australian banks, which own the most of the major lenders from New Zealand.

Shelter was sought in the bond market, with the 10-year benchmark US Treasury bond yield – which drops when prices rise – falling to 0.5680%, its lowest since March 10.

The dollar maintained its gains overnight.

US JOBLESS SEEN SWELLING

Trump also said overnight that he is considering a plan to stop flights to the U.S. coronavirus hot spots, which would break up an already faltering airline industry and worsen the global downturn that will limit corporate profits.

The top three Wall Street indices fell more than 4% overnight.

“The question of whether the US index will test March lows will be the topic today,” said Chris Weston, director of research at Melbourne broker Pepperstone, in a note.

“The earnings estimates are too high,” he said. “And when we hear of companies that are holding back buyouts and putting dividend plans on hold, we can expect that to have an impact on lower profits as well. “

US labor market data will likely provide the next test. According to a Reuters survey of economists, initial claims for unemployment benefits last week likely exceeded the record 3.3 million recorded last week, with 3.5 million expected.

On the foreign exchange markets, security and liquidity remained in high demand, the dollar standing at $ 1.0950 for one euro and 107.31 Japanese yen.

It also mostly held gains against Australian and New Zealand dollars and increased against emerging market currencies.

Spot gold fell 0.5% to $ 1,584.33 an ounce.

Oil futures rebounded after falling overnight, before reducing gains as demand prospects remain weak and storage tanks quickly fill up with oversupply of crude.

Brent futures last traded at $ 1 at $ 25.78 per barrel and American crude rose 3% to $ 20.96 per barrel.

Reporting by Herbert Lash; tom’s additional reports
Westbrook in Sydney; Editing by Sonya Hepinstall and Sam Holmes

Our standards:Principles of the Thomson Reuters Trust.

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