GLOBAL MARKETS-Asian shares, oil slump as coronavirus fears take hold

* Equities slump on resurgence of coronavirus infections
* Oil futures extend sell-off on demand worries
* Yuan slips against dollar as coronavirus rattles Asian FX

By Stanley White and Chibuike Oguh
TOKYO/NEW YORK, June 12 (Reuters) - Asian shares fell
sharply on Friday after Wall Street and oil tumbled over growing
concerns that a resurgence of coronavirus infections could stunt
the pace of recovery in economies reopening from lockdowns.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS slid 1.3%. Australian stocks .AXJO dropped
1.74%, while shares in China .CSI300 fell 0.67%.
Oil futures slumped for a second consecutive trading session
due to worries about weak global energy demand, which weighed on
the currencies of oil producers and countries that rely on
exporting commodities.
The Chinese yuan headed for its biggest daily decline in two
weeks, underscoring investors' risk-averse mood in Asia.
The three major U.S. stock indexes fell more than 5% on
Thursday, posting their worst day since mid-March, when markets
were sent into freefall by the abrupt economic lockdowns put in
place to contain the pandemic.
"All of a sudden the coronavirus, which has been an also-ran
story for some days now, became more important as the virus
began picking up in some states, and the market began thinking
there may be delays to reopening," said Tim Ghriskey, chief
investment strategist at Inverness Counsel in New York.
U.S. stock futures, the S&P 500 e-minis ESc1 , rose 1.1% in
Asia on Friday, but that did little to help sentiment.
Japan's Nikkei stock index .N225 slid 1.22%, and shares in
South Korea .KS11 fell 2.24% as some investors booked profits
from a recent rally in global equities.
Coronavirus cases have jumped in several U.S. states in
recent days, raising concern among experts who say authorities
have loosened restrictions put in place to contain the spread
too early.
Cases in New Mexico, Utah and Arizona rose by 40% for the
week ended Sunday, a Reuters tally shows. Florida and Arkansas
are other hot spots. The U.S. Federal Reserve released a gloomy economic outlook
at the end of its two-day monetary policy meeting on Wednesday.
Chairman Jerome Powell warned of a "long road" to recovery.
Economic data appeared to back up the Fed's projections,
with jobless claims still more than double their peak during the
Great Recession and continuing claims at an astoundingly high
20.9 million. U.S. crude CLc1 slid 1.87% to $35.66 a barrel, while Brent
crude LCOc1 eased 1.43% to $38.00 per barrel in Asia on Friday
hit by renewed concerns over demand and a large buildup of U.S.
crude inventories. O/R
The Mexican peso MXN= and the Norwegian krone NOK= fell
against the U.S. dollar as the decline in crude prices hurt
currencies from oil-producing countries.
Commodity-linked currencies, the Australian AUD=D3 and New
Zealand dollars NZD=D3 , snapped a three-week run of sharp
gains.
In the onshore market, the yuan CNY=CFXS fell 0.3%, headed
for its biggest daily decline since May 27.
The 10-year U.S. Treasury yield US10YT=RR edged up
slightly to 0.6853% on Friday. US/
Bond prices were well supported after they rallied following
the Fed's commitment on Wednesday to years of extraordinary
support to counter the economic fallout from the pandemic.

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(Editing by Neil Fullick and Jacqueline Wong)