GLOBAL MARKETS-Asia stocks under pressure as vaccine rally falters

* Asian stock markets: https://tmsnrt.rs/2zpUAr4

By Chris Prentice
WASHINGTON, May 19 (Reuters) - Asia stocks are likely to
come under pressure on Wednesday, tracking declines on Wall
Street while gold prices were buoyed by safe-haven demand as
economic indicators pointed to more signs of recession.
Hong Kong futures HSIc1 fell 0.23% and Australian shares
were set to open lower, tracking U.S. market losses and as
diplomatic tensions between Canberra and Beijing rose. Nikkei
futures NKc1 were little-changed versus Nikkei 225 index's
.N225 previous close.
Australia and China traded barbs on Tuesday in an
increasingly acrimonious spat over Australia's support for a
global inquiry into the origins of the coronavirus
pandemic. Wall Street dropped in late-day trade after a report from
medical news website STAT said early data from Moderna Inc's
MRNA.O COVID-19 vaccine was insufficient. Signs of economic
contraction damped the investor enthusiasm seen on Monday, even
as more countries loosened coronavirus lockdown restrictions.
"Equity markets have failed to build on Monday's exuberance
which was driven in part by the excitement over U.S. drug
company Moderna's early COVID-19 vaccine test results," National
Australia Bank analysts said in a Wednesday note.
Data showed U.S. homebuilding dropped by the most on record
last month and permits for future construction tumbled, fuelling
fears the coronavirus pandemic would lead to the deepest
economic contraction in the second quarter since the Great
Depression. The Dow Jones Industrial Average .DJI fell 1.59%, the S&P
500 .SPX lost 1.05% and the Nasdaq Composite .IXIC dropped
0.54%.
The United States on Tuesday extended restrictions on
cross-border travel with Canada and Mexico. Spot gold prices XAU= were little changed and not far from
Monday's more than 7-1/2-year high, buoyed by safe-haven appeal
amid economic uncertainty.
Europe's STOXX 600 index .STOXevX and MSCI's gauge of
stocks across the globe .MIWD00000PUS both fell. The euro and
European government debt rallied on a Franco-German proposal to
fund grants for regions hit hardest by the pandemic.
Oil prices LCOc1 earlier gained after the U.S. Treasury
Secretary told lawmakers certain stimulus measures would
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Tracking the spread of the novel coronavirus https://graphics.reuters.com/CHINA-HEALTH-MAP/0100B59S39E/index.html
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