* Asian stock markets: https://tmsnrt.rs/2zpUAr4
* Tracking the coronavirus: https://tmsnrt.rs/3aIRuz7
* Asian stocks fall; CDC warns Americans on virus
* Treasury yields hit record low
* Dollar left damaged by bond market rally
* Oil rises on hopes output cuts to support market
By Stanley White
TOKYO, March 6 (Reuters) - Asian shares and U.S. stock
futures fell on Friday following another Wall Street rout as
disruptions to global business from the coronavirus beyond China
worsened, stoking fears of a prolonged world economic slowdown.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS was down 1.3%. Australian shares .AXJO were
down 1.64%, while Japan's Nikkei stock index .N225 slid 2.29%.
Yields on 10-year U.S. Treasuries fell to a record low and
two-year yields fell to the lowest in more than three years as
investors increased bets that the Federal Reserve will follow
this week's surprise 50 basis point rate cut with further easing
to prevent corporate bond spreads from widening further.
Tumbling yields hammered the dollar, which traded near a
six-month low versus the yen and close to a two-year trough
against the Swiss franc.
Oil prices fell due to worries that non-OPEC oil producers
might not agree to output cuts even though global energy demand
is weakening.
The spread of a new coronavirus has accelerated so much in
Europe, Britain and North America that investors who once played
down the virus are now re-assessing the risks, which means more
volatility in financial markets.
"Optimism overseas is fading and now people are really
starting to question just how bad things will get," said Takuya
Kanda, general manager of research at Gaitame.com Research
Institute in Tokyo.
"For some investors, Treasuries are the only place to park
their money, but for others buying the dollar or stocks is out
of the question."
U.S. stock futures ESc1 erased early gains to trade down
0.12% in Asia on Friday.
The S&P 500 .SPX tumbled 3.39% on Thursday. The benchmark
S&P 500 ended down more than 10% from its Feb. 19 closing high,
after last week logging its biggest weekly percentage decline
since October 2008.
Officials and companies in Britain, France, Italy, and the
United States are struggling to deal with a steady rise in
coronavirus infections that have in some cases triggered
corporate defaults, office evacuations, and panic buying of
daily necessities.
The flu-like virus emerged late last year in the central
Chinese city of Wuhan and has since spread to more than 80
countries and has claimed more than 3,000 lives. New infections
have slowed in China, but there are concerns other countries are
not prepared.
Shares in China CSI300. fell 0.96%, while stocks in Hong
Kong .HIS , another city hard hit by the virus, fell 1.89%.
Travel restrictions and factory closings aimed at curbing
the spread of the virus are expected to put downward pressure on
global economic growth.
Many investors await the release of U.S. non-farm payrolls
later on Friday. Recent U.S. economic data has been encouraging,
but concerns about the epidemic are likely to overshadow any
signs of a strong labour market.
The Federal Reserve and Bank of Canada both responded to the
economic threats by cutting interest rates by 50 basis points
this week.
The yield on benchmark 10-year Treasury notes US10YT=RR
fell to a record low of 0.8980% in Asia Friday. The two-year
yield US2YT=RR fell to 0.5420%, the lowest since July 2016.
Minneapolis Federal Reserve President Neel Kashkari said
late on Thursday the Fed could cut rates further if the impact
of the coronavirus is worse than expected. Money markets were pricing in another 25 basis-point-cut
from the current 1% to 1.25% range at the next Fed meeting on
March 18-19 and a 50-basis-point cut by April.
Against the Japanese yen JPY= , the dollar fell to a
six-month low and was last at 106.03 yen. The greenback also
sank to a two-year trough of 0.9447 Swiss franc CHF=EBS .
Sterling GBP=D3 traded near a one-week high versus the
dollar.
The euro EUR=EBS held steady at $1.1225. Markets in the
euro zone are pricing in a 93% chance that the European Central
Bank will cut its deposit rate, now minus 0.50%, by 10 basis
points next week.
U.S. crude CLc1 fell 0.37% to $45.73 a barrel. Brent crude
LCOc1 fell 0.32% to $49.83 per barrel. Worries about a decline
in global demand caused by the coronavirus outbreak and
uncertainty about production cuts hurt crude prices.