GLOBAL MARKETS-China PMI offers tiny relief to Asia as stocks head for dire end to quarter

* Asian stock markets : https://tmsnrt.rs/2zpUAr4
* Asia shares supported by month-end demand, calmer mood
* China factory survey beats forecasts, PMI rises to 52.0
* Oil prices steady for now after steep drop

By Wayne Cole and Alun John
SYDNEY/HONG KONG, March 31 (Reuters) - Asian shares were set
to close out a calamitous quarter by eking out a small rally on
Tuesday as factory data from China held out the hope of a
revival in activity, even as much of the rest of the world shut
down.
China's official manufacturing purchasing managers' index
(PMI) bounced to 52.0 in March, up from a record-low 35.7 in
February and topping forecasts of 45.0. Analysts cautioned the underlying activity probably remained
well below par as the improvement measures the net balance of
firms reporting an expansion or contraction. China's National
Bureau of Statistics also warned that the rebound didn't signal
a stabilisation in activity, and was partly due to the very low
base in February.
"The fact that the numbers were not in the 60s shows that
this is not going to be a V shaped recovery," said Cliff Tan
East Asia head of global markets research at MUFG.
The number was enough of a relief though to help MSCI's
broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS rise 0.94%. That still left it down 22% for the
quarter, its worst performance since 2008.
Gains were modest at best. Shanghai blue chips .CSI300
rose 0.4% and South Korea .KS11 1.87%. Japan's Nikkei .N225
eased 1%, to be down 20% since the start of the year.
E-Mini futures for the S&P 500 ESc1 were flat, EUROSTOXX
50 futures STXEc1 rose 0.7% while FTSE futures FFIc1 fell
0.25%.
Healthcare had led Wall Street higher, with the Dow .DJI
ending Monday up 3.19%, while the S&P 500 .SPX gained 3.35%
and the Nasdaq .IXIC 3.62%. .N
News on the coronavirus remained grim but radical stimulus
steps by governments and central banks have at least provided
some comfort to economies.
Infections in hard-hit Italy slowed a little, but the
government still extended its lockdown to mid-April. California
reported a steep rise in people being hospitalised, while
Washington state told people to stay at home. Trade ministers from the Group of 20 major economies agreed
on Monday to keep their markets open and ensure the flow of
vital medical supplies. OVERWHELMED
Portfolio management also played a part in the forex market
where many fund managers found themselves over-hedged on their
U.S. equity holdings given the sharp fall in values seen this
month, leading them to buy back dollars.
That saw the euro ease back to $1.1015 EUR= , from a top of
$1.143 on Monday, while the dollar index bounced to 99.34
=USD , from a trough of 98.330. USD/
"Month- and quarter-end rebalancing amid relatively thin
liquidity was the major driver of currency markets in the Asia
session," said analysts at CBA in an note.
Demand for dollars from Japanese funds saw the dollar inch
up to 108.45 yen JPY= , though it remained some way from last
week's peak at 111.71.
Oil prices steadied, after diving to the lowest in almost 18
years on Monday as lockdowns for the virus squeezed demand even
as Saudi Arabia and Russia vied to pump more product. O/R
U.S. crude CLc1 added $1.12 to $21.2, while Brent crude
LCOc1 futures gained 28 cents to $23.01 a barrel.
In a new twist, U.S. President Donald Trump and Russian
President Vladimir Putin agreed during a phone call on Monday to
have their top energy officials meet to discuss slumping prices.
"However, the reality is that the level damage to demand is
likely to overwhelm any production cut agreement between major
producers," wrote analysts at ANZ in a note.
"The lockdown of cities around the world and the shutdown of
the aviation industry will cause a fall in demand the industry
has never seen before."
In the gold market all the talk has been of a rush of demand
for the physical product amid shortages in coins and small bars.
Flows into gold-backed ETFs have ballooned by $13 billion so far
this year, the most since 2004.
The metal was holding at $1,613 an ounce XAU= , well up
from a low of $1,450 touched early in the month. GOL/

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(Editing by Sam Holmes & Shri Navaratnam)