GLOBAL MARKETS-Asian shares stumble ahead of EU Summit, U.S. stimulus talks

* Asian stock markets : https://tmsnrt.rs/2zpUAr4
* Asian shares fall, sentiment cautious
* Concerns over rising coronavirus cases globally
* Eyes on fiscal support package talks in EU, U.S.

By Swati Pandey
SYDNEY, July 20 (Reuters) - Asian shares were downbeat on
Monday with oil and copper also soft, as a spike in global
coronavirus cases hung over markets awaiting efforts from the
euro zone and United States to stitch together fiscal stimulus
plans to fight the pandemic.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS slipped 0.2%, reversing early gains after E-mini
futures for the S&P 500 ESc1 turned negative to be down 0.4%.
Australian shares were among the biggest losers, falling
0.6%, after coronavirus cases in the southeast state of Victoria
continued to rise. South Korea's KOSPI .KS11 pared gains to fall 0.5% while
Hong Kong's Hang Seng index .HSI stumbled 0.4%.
Japan's Nikkei .N225 , which had started firm, faltered by
late morning to be last off 0.35% after data showed the
country's exports suffered a double-digit decline for the fourth
month in a row in June. Chinese shares bucked the trend with the blue-chip CSI300
index .CSI300 up 0.8%.
More than 14 million people have been infected by the novel
coronavirus globally and nearly 602,000 have died, according to
a Reuters tally. Investor focus is on a European Union Summit where leaders
are haggling over a plan to revive economies throttled by the
coronavirus pandemic. The leaders are at odds over how to carve up a vast recovery
fund designed to help haul Europe out of its deepest recession
since World War Two, and what strings to attach for countries it
would benefit. Diplomats said it was possible that they would
abandon the summit and try again for an agreement next month.
In response, the euro EUR=EBS opened 0.2% lower in early
Asian trade to go as low as $1.1400. The single currency
recouped some of its losses to stand at $1.1419.
"The commitment by EU leaders in extending talks, and
reports of further talks if no agreement is reached today, shows
the desire to have the recovery fund in some form," said NAB
analyst Tapas Strickland.
However, it was likely to be "a very long and winding road"
before a deal is reached, he added.
In the United States, the Congress is set to begin debating
a new aid package this week, as several states in the country's
South and West implement fresh lockdown measures to curb the
virus.
The virus has claimed over 140,000 U.S. lives in total since
the pandemic started, and Florida, California, Texas and other
southern and western states shatter records every day.
The United States, with 3.7 million total cases, has almost
as many infections as the next three hardest-hit countries
combined - Brazil, India and Russia.
"Wall Street remains upbeat, but sentiment on Main Street is
turning grim in response to the upsurge in COVID-19 cases that
is prompting a renewal of lockdown restrictions," Oxford
Economics said in a note.
"Furloughed workers are more pessimistic about getting their
jobs back; they are also becoming more concerned about the loss
of income if a fiscal package with new relief is not
forthcoming."
Fiscal support is also a focus in Australia where the
government will release a 'mini budget' later this week.
In currencies, the dollar climbed against the Japanese yen
JPY= to 107.37. Sterling fell to $1.2520.
The risk-sensitive Australian dollar AUD=D3 was weaker as
well, down 0.2% at $0.6977. That left the dollar index =USD up
0.2% at 96.134.
In commodities, spot gold XAU= eased a tad to 1,807.6 an
ounce to hover near a nine-year top.
U.S. crude CLc1 fell 24 cents to $40.35 per barrel and
Brent LCOc1 was down 25 cents at $42.89. O/R
Prices for copper CMCU3 , a barometer of economic growth,
fell on Monday after data showed rising inventories in Chinese
warehouses and as climbing coronavirus cases threaten a
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(Editing by Richard Pullin and Jacqueline Wong)