CORRECTED-GLOBAL MARKETS-Dollar firm but stocks, oil under pressure as U.S.-China tensions rise

(Corrects spelling of Warren Buffett in paragraph 7)
* Pompeo says 'significant evidence' virus emerged from lab
* AUD, NZD hit one-week lows; stocks poised to slip
* China, Japan on holidays
* Asian stock markets: https://tmsnrt.rs/2zpUAr4

By Tom Westbrook
SINGAPORE, May 4 (Reuters) - The dollar rose, oil fell and
stock markets were poised to slip on Monday as rising U.S.-China
tensions over the coronavirus - and growing unease at the gulf
between asset prices and grim economic reality - turned
investors cautious.
In thin trade, with China and Japan on holiday, U.S. stock
futures ESc1 fell 1.6%, U.S. crude CLc1 tumbled over $1 a
barrel, or 6%, and futures for Australia's benchmark ASX 200
index YAPcm1 pointed to a negative open.
The safe-haven U.S. dollar rallied to one-week highs against
the risk sensitive Australian and New Zealand dollars. AUD/
The moves extended a dour start to the month that began on
Friday with bleak U.S. data and the threat of fresh trade-war
hostilities between the world's two biggest economies.
U.S. Secretary of State Mike Pompeo added to the jitters
with remarks on Sunday, when he said there was "a significant
amount of evidence" that the new coronavirus emerged from a
Chinese laboratory. Pompeo did not provide evidence, or dispute U.S.
intelligence agencies' conclusion that the virus was not
man-made. But the comments double down on Washington's pressure
on China over the virus' origin as U.S. deaths and economic
damage mount.
A $50 billion dollar quarterly loss at Warren Buffett's
Berkshire Hathaway BRKa.N , and the legendary investor
announcement that he had liquidated holdings in the four largest
U.S. airlines also did little for investor confidence.
"The risk of a pullback has increased this week," said Chris
Weston, head of research at Melbourne brokerage Pepperstone.
"The United States is not alone in publicly taking aim at
China, but whether it's Trump, Kudlow or Pompeo the narrative is
more frequent, and traders are selling yuan," he said.
With onshore markets shut, the yuan extended Friday's slump
and fell about 0.2% to a six-week low of 7.1510 per dollar
CNH= . The Australian dollar AUD=D3 dropped below the 64-cent
mark for the first time in a week, falling 0.5% to $0.6387.
The Korean won KRW= sat by a one-week low at 1,224.76 per
dollar, after an exchange of gunfire between North Korea and
South Korea at the Demilitarized Zone (DMZ) raised tensions, a
day after North Korean state media reported Kim Jong Un's first
public appearance since April 11. Elsewhere in currency markets, the Japanese yen JPY= was
steady at 106.80 per dollar and the euro EUR= was a touch
weaker at $1.0969. The pound GBP= and New Zealand dollar
NZD=D3 slipped.
In commodity markets, U.S. crude futures sank in early trade
on worries about oil oversupply, even as some U.S. states and
cities around the world start to ease coronavirus pandemic
restrictions. O/R
West Texas Intermediate crude Clc1 futures last sat at
$18.59 per barrel, down $1.19, while Brent futures LCOc1 were
down 2.4%, or 64 cents, at $25.80.
U.S. manufacturing plunged to an 11-year low last month,
consumer spending has collapsed and some 30.3 million Americans
have filed claims for unemployment in the last six weeks.
"There is a sense of caution, if not foreboding as signs of
economic weakness continue to emanate," said Vishnu Varathan,
head of economics and strategy at Mizuho Bank in Singapore.
"What's really chilling is the risk that an almost
quadrupling of unemployment to above 16% may prove sticky."
The U.S. April jobs report will be released on Friday, but
some analysts say it may not fully reflect how many people have
been thrown out of work.

(Editing by Kim Coghill)