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GLOBAL MARKETS-Jump in new coronavirus cases derails stock rally

Published 13/02/2020, 01:59
© Reuters.  GLOBAL MARKETS-Jump in new coronavirus cases derails stock rally
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* Hubei province reports 14,840 new cases vs 2,015 on Feb.

* U.S. stock futures slip, dollar/yen drops 0.2%

* Nikkei down 0.2% in early trade

* Asian stock markets: https://tmsnrt.rs/2zpUAr4

By Tom Westbrook

SINGAPORE, Feb 13 (Reuters) - Asian stock markets wobbled

and the safe-havens of the Japanese yen, gold and bonds rose on

Thursday as the number of new coronavirus cases at the

outbreak's epicentre jumped sharply.

China's Hubei province, the epicentre of the virus, reported

242 new deaths and confirmed 14,840 new cases on Feb. 12, a

dramatic rise from the 2,015 new cases a day

earlier. The increase came as provincial officials adopted a new

methodology for counting infections although it was not

immediately clear how the new methods affected the results, nor

why the death toll rose so sharply. The spike dashed hopes that the virus was slowing, knocking

U.S. e-mini stock futures in to negative territory, sending the

Japanese yen 0.2% higher against the dollar and pushing yields

on U.S. 10-year Treasuries about 3 basis points lower

US10YT=RR .

It also capped gains on stock boards, with MSCI's broadest

index of Asia-Pacific shares outside Japan .MIAPJ0000PUS 0.04%

weaker, despite a strong rally on Wall Street overnight.

Japan's Nikkei .N225 was 0.2% lower, while Australia's

ASX/S&P 200 index .AXJO retreated from a record high.

"The slowdown was the key driver of the rally in

growth-exposed assets that we've seen over the past 24 hours...a

lot of people leapt to the conclusion that we might have seen a

peak," said Michael McCarthy, chief strategist at CMC Markets in

Sydney.

"The reversal of what appeared to be good news is enough to

have people scrambling for the exits."

The yen last traded at 109.91 per dollar JPY= while

export-exposed currencies, which had rallied on confidence the

virus could be contained, retraced rises.

The Australian dollar lost 0.2% AUD=D3 , as did China's

yuan CNH= and the Korean won KRW= . Gold rose 0.3% to

$1570.30 per ounce XAU= .

Overnight, World Health Organization chief Tedros Adhanom

Ghebreyesus had warned the apparent slowdown in the spread of

the epidemic should be viewed with "extreme caution."

"This outbreak could still go in any direction," he told a

briefing in Geneva.

More than 1,300 people have died from the epidemic in China

and the total number of cases in Hubei province now stands at

48,206.

The economy has also been upended, with factory closures

hitting supply chains from car makers to tech firms.

(Editing by Sam Holmes)

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