* Asian stock markets : https://tmsnrt.rs/2zpUAr4
* Nikkei bounces 1.8%, still down for week
* China PMI at 50 as expected, services stronger
* WHO confident China steps will contain virus
* Amazon surges 11% as sales beat expectations
By Wayne Cole
SYDNEY, Jan 31 (Reuters) - Asian share markets were fighting
to stabilise at the end of a punishing week as investors
clutched at hopes China could contain the coronavirus, even as
headlines spoke of more cases and more deaths.
Supporting sentiment were surveys showing Chinese
manufacturing activity held steady in January while services
actually firmed, though this was likely before the virus took
full hold. Indeed, reports some Chinese provinces were asking companies
not to re-start until Feb. 10 suggested activity would take a
hard knock this month.
For now, sentiment got a timely boost when Amazon's AMZN.O
sales blew past forecasts and sent its stock soaring 11% after
hours, adding over $100 billion in market worth. MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS edged up 0.4%, but was still down 3.8% on the
week so far. Its 2.3% dive on Thursday had been the sharpest
one-day loss in six months.
Japan's Nikkei .N225 bounced 1.8%, recouping half of its
weekly loss. E-Mini futures for the S&P 500 ESc1 firmed 0.2%,
having rebounded late Thursday to end up 0.5%.
The World Health Organization on Thursday declared a global
emergency as the virus spread to more countries.
Tedros Adhanom Ghebreyesus, WHO director-general, said the
greatest worry was the potential for the virus to spread to
countries with weaker health systems. Yet investors took heart from comments that the drastic
steps Beijing was taking would "reverse the tide" and contain
the outbreak.
"Some shorts covered after the director gave the WHO's stamp
of approval to China's aggressive containment effort," said
Stephen Innes, Asia Pacific market strategist at AxiCorp.
"For now, the market's risk lights have shifted from
flickering on red to a steady shade of amber, which could bring
more risk back into play."
Wall Street quickly recouped its losses and ended higher in
the wake of the WHO comments.
The Dow .DJI finished up 0.43%, while the S&P 500 .SPX
gained 0.31% and the Nasdaq .IXIC 0.26%. After the bell,
NASDAQ futures NQc1 pushed 1.3% higher on the Amazon results.
Still, the flow of news on the virus remained bleak with
China's Hubei province reporting deaths from the disease had
risen by 42 to 204 as of the end of Jan. 30. More airlines curtailed flights into and out of China and
companies temporarily closed operations, while Italy became the
latest country to confirm cases of the virus.
JPMorgan shaved its forecast for global growth by 0.3%
points for this quarter, but then expected the loss to be made
up over the rest of the year.
BONDS IN DEMAND
The drum beat of bad news kept safe-haven bonds well bid,
with yields on U.S. 10-year Treasury notes US10YT=RR down 8
basis points for the week so far and near four-month lows.
The yield curve between three-month bills and 10-year notes
had also inverted twice this week, a bearish economic signal.
In currencies, the star performer was sterling which jumped
after the Bank of England confounded market expectations by not
cutting interest rates on Thursday. GBP/
The pound was last at $1.3100 GBP=D3 , a surprisingly
steady performance given this is the day the UK officially
leaves the European Union.
The dollar took a slight knock overnight when data showed
the U.S. economy grew at its slowest annual pace in three years
in 2019 and personal consumption weakened sharply. It was a shade firmer on the yen at 109.07 JPY= , while the
euro was steady at $1.1030. Against a basket of currencies, the
dollar was steady at 97.858 .DXY .
The dollar has fared much better against emerging market
currencies as investors ran from risk. EMRG/FRX
Spot gold was almost unchanged for the week at $1,571.20 per
ounce XAU= , having failed to get much of a safe-haven bid as a
range of other commodities, from copper to iron ore, were
hammered by worries about Chinese demand.
Oil bounced on short covering, having hit its lowest in
three months as the global spread of the coronavirus threatened
to curb demand for fuel. O/R
U.S. crude CLc1 regained $1.08 to $53.22 a barrel, while
Brent crude LCOc1 futures rose $1.01 to $59.30 a barrel.
Asia stock markets https://tmsnrt.rs/2zpUAr4
Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
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(Editing by Sam Holmes)