GLOBAL MARKETS-Asian stocks slip as virus fears deepen ahead of U.S. jobs data

* Asian stocks drift lower in meandering session
* Trump warns of 'horrific' days ahead
* U.S. jobless claims due at 1230 GMT, seen hitting new high
* Asian stock markets: https://tmsnrt.rs/2zpUAr4

By Tom Westbrook
SINGAPORE, April 2 (Reuters) - Asian share markets were
pinned down on Thursday, haunted by the rising U.S. coronavirus
death toll, and with investors braced for more signs of economic
pain in the world's largest economy ahead of another likely
record week of jobless claims.
With hopes growing that the worst of the outbreak may have
passed for China and South Korea, the mood was less bleak than
on Wall Street, which plunged overnight.
Yet MSCI's broadest index of Asia-Pacific shares outside
Japan .MIAPJ0000PUS fell 0.3% while Japan's Nikkei .N225 was
down 1%. European futures rose 0.2% STXEc1 and U.S. futures
ESc1 bounced 1.2% after Wednesday's rout.
Bonds rallied and the U.S. dollar hung on to recent gains.
"Everyone's trying to figure out how much of the month-end
moves last week were just a bear market rally, or real - it's
that dance," said Kay Van-Petersen global macro strategist at
Saxo Capital Markets in Singapore.
"My viewpoint is that we're still in a bear market and the
U.S. is not even close to pricing in the massive economic
dislocation, let alone the deaths they're going to find."
Markets in Hong Kong and Shanghai fluctuated either side of
flat.
Australia's bank-heavy benchmark .AXJO stayed in the red,
last down 1.5%, 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. Bonds jumped and the yield on safe-haven 10-year U.S.
Treasuries - which falls when prices rise - fell as far as
0.5680%, its lowest since March 10, and hardly budged higher.
U.S. labour market data will likely provide the next test of
market sentiment and of the pain in the real economy.
Initial claims for jobless benefits last week probably
surpassed the week-ago record of 3.3 million, with 3.5 million
expected, according to a Reuters survey of economists.
"We think last week's print of just under 3.5 million is
ripe for a dramatic upward revision," said RBC Capital Markets'
chief U.S. economist, Tom Porcelli.
"This week we look for another sizeable 4 million increase."

DIFFICULT DAYS
China and South Korea have shown signs of controlling the
virus, reporting falling numbers of new cases, but progress
remains fragile and infections are soaring globally.
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 46,906.
U.S President Donald Trump, who had initially played down
the outbreak, told reporters at the White House on Wednesday
that he is considering a plan to halt flights to coronavirus hot
zones in the United States.
White House medical advisers 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.
"Difficult days are ahead for our nation," Trump said.
"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."
In currency markets, safety and liquidity remained in hot
demand, with the dollar gaining against the euro and yen and
mostly holding ground won overnight against other majors. FRX/
It last stood at $1.0939 per euro EUR= and 107.47 Japanese
yen JPY= and rose against emerging market currencies.
The South African rand ZAR= hit a fresh low on Thursday
while the Turkish lira TRYTOM=D4 touched a two-year low.
EMRG/FRX
Spot gold XAU= fell 0.4% to $1,583.56 an ounce. GOL/
Oil futures bounced after overnight drops, before paring
gains slightly since the demand outlook remains weak and storage
tanks are quickly filling with an oversupply of crude. O/R
Brent futures LCOc1 last traded $1.46 firmer at $26.20 per
barrel and U.S. crude CLc1 was 4% higher at $21.22 a barrel.

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