GLOBAL MARKETS-Asian stocks slump, gold jumps after dovish Fed

* Asian stock markets: https://tmsnrt.rs/2zpUAr4
* Equities weak across Asia in wake of Fed minutes
* China tensions, coronavirus weigh on some markets
* Oil falls, gold rises as sentiment weakens

By Stanley White and Chibuike Oguh
TOKYO/NEW YORK, Aug 20 (Reuters) - Asian equities and U.S.
futures fell on Thursday, hurt by the U.S. Federal Reserve's
cautious view of the economy, tensions with China and new
clusters of coronavirus infections.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS slid 1.79%, the biggest daily decline in five
weeks. U.S. stock futures ESc1 were down 0.55%.
Australian stocks .AXJO dropped 0.91% due to concern that
ties with China will worsen further after a report that
Australian regulators will reject acquisitions by a Chinese
company. Shares in China .CSI300 fell 1.28% due to dwindling
expectations for additional monetary easing after the People's
Bank of China kept a benchmark lending rate unchanged on
Thursday. Japanese stocks .N225 slid 1.06%. South Korean stocks
.KS11 tumbled 3.26%, the biggest daily decline since June 15,
amid a spike in coronavirus cases in Seoul. Euro Stoxx 50 futures STXEc1 were down 1.36%, German DAX
futures FDXc1 fell 1.31%, and FTSE futures FFIc1 was off
1.27%.
Market sentiment had been bullish up until Fed policymakers'
comments highlighted uncertainties over the U.S. recovery, with
the S&P 500 and the Nasdaq hitting all-time highs driven largely
by Apple Inc. AAPL.O .
The iPhone maker's shares rose 1.4% to make the first
publicly listed U.S. company reach $2 trillion in market
capitalisation, while strong results from retailers Target and
Lowe's also lifted sentiment. The positive mood quickly faded, however, after several Fed
members said additional easing may be needed because a rebound
in employment was already slowing. The downbeat tone spilled over into Asia, which weighed on
equities and oil futures but pushed gold prices higher due to
economic uncertainty.
"It was a decent day for banks, Apple, and Nike but
everything else was in the reverse after the Fed said economic
conditions will be difficult for a while," said Jamie Cox,
managing partner at Harris Financial Group.
"We've seen some good numbers out of retail but there's
uncertainty that these companies won't replicate those earnings
without some stimulus."
Minutes from the Fed's July meeting showed the swift rebound
in employment seen in May and June had likely slowed and that
additional "substantial improvement" in the labour market would
hinge on a "broad and sustained" reopening of business
activity. The readout on Fed discussions provides hints to further
action that the U.S. central bank could take in September. No
change in interest rate policy is expected until end-2021.
The Dow Jones Industrial Average .DJI fell 0.31%, the S&P
500 .SPX lost 0.44% and the Nasdaq Composite .IXIC dropped
0.57%.
Spot gold XAU= rose 0.82% to $1,945.43 per ounce on
Thursday, recovering from a 3.6% tumble on Wednesday as the
cautious mood boosted demand for the safe harbour asset. GOL/
The yield on benchmark 10-year Treasury notes US10YT=RR
fell slightly to 0.6623% while those on the 20-year bond
US20YT=RR also fell to 1.1725%.
Some bond investors were also disappointed after the Fed
minutes showed central bankers downplayed the chance of capping
bond yields.
The dollar index =USD , which reflects the greenback's
value against six leading trading currencies, steadied at
92.983.
Oil prices edged lower over lingering concerns of weak
global fuel demand after data showed that U.S. crude stockpiles
USOILC=ECI fell 1.6 million barrels last week.
Brent crude futures LCOc1 fell 0.77% to $45.02 a barrel.
U.S. crude futures CLc1 slid by 0.89% to $42.55 a barrel.

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