* Early signs of virus peaking in Europe, New York
* Broad gains from Tokyo to Sydney but momentum ebbs
* Currencies, bonds steady as economic risks weighed
* Asian stock markets: https://tmsnrt.rs/2zpUAr4
By Paulina Duran and Tom Westbrook
SYDNEY/SINGAPORE, April 7 (Reuters) - Asian stock markets
rallied for a second day on Tuesday and riskier currencies rose,
on tentative signs the coronavirus crisis may be levelling off
in New York and receding in Europe.
Gains, however, lacked Monday's momentum as the number of
coronavirus cases kept rising globally and an economic crash on
a scale not seen for generations looms large.
FTSE futures FFIc1 gained 3.08% and EuroSTOXX 50 futures
STXEc1 rose 0.61%, pointing to a steady open in Europe, while
U.S. stock futures ESc1 were steady after trading either side
of flat through the Asian day.
"At the moment Asian markets are leading their global
counterparts and reacting with some optimism to speculation that
we may be reaching peak infection and mortality rates in major
cities," said Michael McCarthy, chief market strategist at CMC
Markets. "But frankly that may be ill-founded."
The United States is bracing for its toughest week yet as
the death toll climbs above 10,000 while across the Atlantic,
British Prime Minister Boris Johnson has entered intensive care
after his COVID-19 symptoms worsened.
Japan's Nikkei .N225 rose 2% and has erased most of last
week's losses after Prime Minister Shinzo Abe promised a massive
$991 billion economic stimulus package - equal to 20% of GDP.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS pared early gains, but rose 1.4%.
Oil rose on hopes the world's biggest producers will agree
to cut output as the virus pandemic crushes demand, while the
risk-sensitive Australian dollar AUD=D3 rose 1%. FRX/
"The market is front running what it believes is a peak in
the virus case count with Europe leading the way," said Chris
Weston, head of research at Melbourne brokerage Pepperstone.
"You can almost smell the fear of missing out from active
managers."
Worldwide, the virus has infected more than 1.3 million
people and killed over 74,000, and the numbers are rising even
as swathes of the globe are under lockdown. Hope stems though from hardest-hit Italy and Spain, where
authorities have started looking ahead to easing lockdowns after
steady falls in coronavirus-related fatality rates.
In New York, the number of deaths each day has also steadied
while hospitalisations, admissions to intensive care and the
number of patients put on ventilators all declined.
Markets in Seoul .KS11 , Shanghai .SSEC and Hong Kong
.HSI opened higher, then pared gains. Australia's ASX 200
.AXJO slipped into the red.
'PEAK DEATH WEEK'
Moves in the currency and bond markets were more muted,
weighed by worries that lifting lockdowns too soon could drive a
fresh wave of infections and caution about the economic fallout.
The U.S. dollar, which has soaked up safety flows for weeks,
slipped on most majors.
The Australian dollar AUD=D3 hit $0.6148, its highest in a
week. AUD/
"It's a long way short of a serious rally," said Sean
Callow, an FX analyst at Westpac in Sydney. "There is still so
much bad news to absorb from the economy."
The New Zealand dollar NZD=D3 rose 1.6% to $0.5988, while
the safe-haven yen lost 0.17%, to 108.80 per U.S. dollar.
The United States has reported skyrocketing unemployment as
lockdowns drive layoffs and is bracing for what one official
called the "peak death week". Roughly twice as many people a day are now dying in the
United States as in Spain or Italy, and hospitals report chaotic
shortages of beds, ventilators and protective gear.
Benchmark 10-year U.S. Treasuries US10YT=RR recovered
their overnight losses, with yields rising 31 basis points to
0.7090%, having fallen almost 9 basis points on Monday. US/
Oil recovered amid hopes major producers will agree to cut
output at a meeting to be held by video conference at 1400 GMT.
Brent crude LCOc1 was up $1.04, or 3.15%, at $34.09 a
barrel after falling more than 3% on Monday. U.S. crude CLc1
was up $1.00 to $27.07 per barrel. O/R
Gold XAU= edged up 0.05% to $1,662.59 per ounce. GOL/