GLOBAL MARKETS-Asian stocks fall after historic Wall St rout

* Asian stock markets: https://tmsnrt.rs/2zpUAr4
* Tracking the coronavirus: https://tmsnrt.rs/3aIRuz7
* Fed rate cut fails to calm nervous investors
* Equities extend global selloff
* Oil market faces falling demand, more Saudi supply

By Stanley White
TOKYO, March 17 (Reuters) - Most Asian shares fell on
Tuesday a day after Wall Street's historic market rout, with
fleeting initial gains evaporating as the coronavirus remained
a major risk to economic growth.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS gave up early gains to trade 0.43% lower.
Japan's Nikkei stock index .N225 slid 2.79% and South Korea's
KOSPI .KS11 was off 3.2%. Australian shares .AXJO were up
0.5% although this followed a massive plunge of almost 10% on
Monday.
U.S. stock futures ESc1 rose 1.16% early in Asian trading,
but these gains were not enough to ease investor concern about
the continuous spread of the flu-like virus.
"It's no surprise that we're seeing a bounce (in U.S. stock
futures) after the big falls on Monday," said Michael McCarthy,
chief market strategist at CMC Markets in Sydney.
"However, the situation continues to deteriorate on the
economic front because of the virus."
Gold, which is normally bought as a safe-haven, extended
declines on Tuesday as some investors chose to sell whatever
they could to keep their money in cash.
Oil futures rebounded in Asia, but downside risks remain due
to an expected slump in global energy demand and Saudi Arabia's
plans to increase crude output to expand its market share.
The U.S. Federal Reserve stunned investors with another
emergency rate cut on Sunday, prompting other central banks to
ease policy in the biggest coordinated response since the global
financial crisis more than a decade ago.
Investors, however, are worried that central banks may have
spent all their ammunition and that more draconian restrictions
on personal movement are necessary to contain the global
coronavirus outbreak.
Financial markets cratered on Monday. The S&P 500 .SPX
tumbled 12%, its biggest drop since "Black Monday" three decades
ago, despite the Fed's surprise move late Sunday to cut interest
rates to near zero, its second emergency interest rate cut in
less than two weeks.
Some $2.69 trillion in market value was wiped from the S&P
500 as it suffered its third-largest daily percentage decline on
record. Over the past 18 days, the benchmark index has lost
$8.28 trillion.
Traders are looking ahead to data due later on Tuesday,
which is forecast to show German investor sentiment tumbled in
March.
The United States will also release retail sales and
industrial production for February, which is unlikely to reflect
the impact of the coronavirus.
Some investors say markets will not settle unless the U.S.
government announces a big fiscal spending package to match the
Fed's bold actions to slash rates and keep credit markets
functioning.
Others say liquidity in some financial markets is starting
to fall because there's such a high degree of uncertainty,
meaning even some traditional safe-havens may not be that safe.
Spot gold XAU= fell 0.29% to $1,509.50 per ounce. GOL/
In the currency market, the Swiss franc CHF=EBS , another
safe haven, was little changed at 0.9470 per dollar as traders
pondered policymakers next moves.
The dollar rose 0.3% to at 106.35 yen JPY=EBS , recovering
slightly from a 2% decline from the previous session as the
Fed's rate rippled through financial markets.
U.S. crude CLc1 ticked up 1.88% to $29.24, but even this
bounce is likely to be temporary.
Saudi Aramco (SE:2222) reiterated on Monday plans to boost output to
record levels. Top global oil producers Saudi Arabia and Russia
started a price war after failing to agree on a plan to curb
supply.
The coming flood of supply from Saudi Arabia and other
producers could result in the largest surplus of crude in
history, said global information provider HIS Markit.
(Editing by Sam Holmes)