* Trump warns of 'horrific' days ahead
* Asian stocks slip, bonds rally, dollar firms
* U.S. jobless claims due at 1230 GMT, seen hitting fresh
record
* Asian stock markets: https://tmsnrt.rs/2zpUAr4
By Tom Westbrook and Herbert Lash
SINGAPORE/NEW YORK, April 2 (Reuters) - Asian equities fell
for a second session on Thursday, after a dire warning about the
U.S. coronavirus death toll had investors looking to the safety
of dollars and bonds and bracing for more bad news from U.S.
jobless figures.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS fell 1.2%. Japan's Nikkei .N225 extended
Wednesday's heavy drop with a 1.5% fall, and investors are
beginning to worry that equities may re-test last month's lows.
Markets in Hong Kong .HSI , Sydney .AXJO , Shanghai
.SSEC and Seoul .KS11 fell, though futures for the S&P 500
ESc1 bounced following Wall Street's 4% plunge overnight.
"Difficult days are ahead for our nation," U.S. President
Donald Trump told reporters at the White House on Wednesday.
"We're going to have a couple of weeks, starting pretty much
now, but especially a few days from now, that are going to be
horrific."
Trump had initially played down the virus' severity, but
White House medical experts now forecast that even if Americans
follow unprecedented stay-at-home orders, some 100,000 to
240,000 people could die from the respiratory disease.
The World Health Organization said the global case count
will reach 1 million and the death toll 50,000 in the next few
days. It currently stands at 43,412.
Markets are also steeled for bad news on the economic front
when weekly U.S. jobless claims data is released at 1230 GMT.
"The shift in rhetoric from the White House has hurt some of
the more bullish traders," said Michael McCarthy, chief
strategist at brokerage CMC Markets in Sydney, while optimism
about local stimulus was waning quickly.
Australia's benchmark ASX 200 index .AXJO fell 2.6%, led
by falls in bank stocks after New Zealand's central bank ordered
a suspension of bank dividends - hitting Australia's banks,
which own most of New Zealand's big lenders.
Shelter was sought in the bond market, with the yield on
benchmark 10-year U.S. Treasuries - which falls when prices rise
- dropping to 0.5680%, its lowest since March 10. US/
The dollar held its overnight gains. FRX/
U.S. JOBLESS SEEN SWELLING
Trump also said overnight that he is considering a plan to
halt flights to coronavirus hot zones in the United States,
which would hammer an already reeling airline industry and add
to an overall slowdown that will curb corporate earnings.
Wall Street's three major indexes fell more than 4%
overnight. .N
"The question of whether the U.S. index goes to test the
March lows will be all the talk today," Chris Weston, head of
research at Melbourne brokerage Pepperstone, said in a note.
"Earnings estimates are too high," he said. "And when we're
hearing of companies curbing buybacks, and shelving dividend
plans, then we should expect this to resonate through earnings
downgrades too."
U.S. labour market data will likely provide the next test.
According to a Reuters survey of economists, initial claims for
jobless benefits last week probably surpassed the week-ago
record of 3.3 million, with 3.5 million expected. In currency markets, safety and liquidity remained in hot
demand, with the dollar standing at $1.0950 per euro EUR= and
107. 31 Japanese yen JPY= .
It also mostly held gains against the Australian and New
Zealand dollars and rose against emerging market currencies.
EMRG/FRX
Spot gold XAU= fell 0.5% to $1,584.33 an ounce. GOL/
Oil futures bounced after overnight drops, before paring
gains since the demand outlook remains weak and storage tanks
are quickly filling with an oversupply of crude. O/R
Brent futures LCOc1 last traded $1 firmer at $25.78 per
barrel and U.S. crude CLc1 was 3% higher at $20.96 a barrel.
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