* Asian stock markets : https://tmsnrt.rs/2zpUAr4
* Nikkei bounces 1%, still down sharply for week
* China Jan PMI at 50 as expected, services stronger
* WHO confident China steps will contain virus
* Amazon surges 11% as sales beat forecasts
By Wayne Cole
SYDNEY, Jan 31 (Reuters) - Asian share markets fought to
regain their footing on Friday as investors clutched at hopes
China could contain the coronavirus, even as headlines spoke of
more cases and mounting deaths.
Helping the mood were surveys showing Chinese manufacturing
activity came in much as expected 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 managed to eke out a 0.2% gain, but was still
down 4% 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%, but again was off 2.5%
for the week. E-Mini futures for the S&P 500 ESc1 added 0.1%,
having rebounded 0.5% late on Thursday.
European bourses looked set to open firmer with EUROSTOXX 50
futures STXEc1 up 0.8% and the FTSE FFIc1 0.7%.
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 his 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."
That helped Wall Street recoup its losses so 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 the U.S. State
Department told citizens not to travel to any part of China.
JPMorgan shaved its forecast for global growth by 0.3%
points for this quarter to reflect the growing impact.
"Based on the patterns observed from other epidemics, we
assume that the outbreak will likely run its course over 2-3
months, meaning the hit to activity happens in the current
quarter" JPMorgan analysts said in a note.
"Also in line with historical experience, we expect a full
recovery to follow."
BONDS CAN'T BE BEAT
The drum beat of bad news kept safe-haven bonds well bid,
with yields on U.S. 10-year Treasuries US10YT=RR down 9 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, sterling held firm after jumping on Thursday
when the Bank of England confounded market expectations by not
cutting interest rates. GBP/
The pound was last at $1.3096 GBP=D3 , a relatively calm
performance given Friday is the day the UK officially leaves the
European Union after years of political turmoil. The dollar took a knock overnight when data showed the U.S.
economy grew at its slowest annual pace in three years and
personal consumption weakened sharply. Yet it was up a fraction on the yen on Friday at 109.07
JPY= . The euro held at $1.1025, while the dollar was steady on
a basket of currencies at 97.923 .DXY .
Most of the action this week has been nervous investors
selling emerging currencies for dollars and yen, leaving the
majors little changed against each other. EMRG/FRX
Spot gold was only a shade firmer for the week at $1,572.11
per ounce XAU= , having failed to get much of a safe-haven bid
as a range of other commodities, from copper to soy beans, were
hammered by worries over Chinese demand.
Oil bounced on short covering, after hitting 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 $1.11 to $53.25 a barrel, while
Brent crude LCOc1 futures rose 90 cents to $59.19.
Asia stock markets https://tmsnrt.rs/2zpUAr4
Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Editing by Sam Holmes)