GLOBAL MARKETS-Pandemic fears curb stocks as markets wait on U.S. jobs test next

* Asian flat in meandering session, bonds rally
* 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.
European futures inched higher, with EuroSTOXX 50 STXEc1
futures up 0.2% and DAX FCEc1 and FTSE futures FFIc1 making
tiny gains. E-mini futures for the S&P 500 ESc1 bounced 1.6%
after the Wall St rout.
Oil rose amid hints of an end to the Russia-Saudi Arabia
price war, and riskier currencies made headway late in the
session. Yet MSCI's broadest index of Asia-Pacific shares outside
Japan .MIAPJ0000PUS struggled to advance, and traded flat.
Japan's Nikkei .N225 followed a heavy fall on Wednesday with a
1.4% drop.
"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 eked out modest gains.
.HK .SS
Australia's bank-heavy benchmark .AXJO stayed in the red,
closing down 2%, 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 - dropped 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 visible 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.
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, the Australian AUD=D3 and New Zealand
dollars NZD=D3 made 0.6% gains late in the Asian session,
along with some emerging markets currencies, though not enough
to recoup steep losses from Wednesday. FRX/
The U.S. dollar was steady against the euro and yen, last
standing at $1.0960 per euro EUR= and at 107.23 Japanese yen
JPY= .
"Ultimately, the dollar is what everyone wants to hold right
now, and demand for dollars is not going to abate until the
pandemic is under control," Rob Carnell, chief economist at ING
Asia in Hong Kong, told the Reuters Global Markets Forum.
"No one really knows when that is going to be."
Spot gold XAU= fell 0.4% to $1,585.90 an ounce. GOL/
Oil futures bounced after overnight drops. O/R
Brent futures LCOc1 last traded $2.57 firmer at $27.31 per
barrel and U.S. crude CLc1 was 8% higher at $22.00 a barrel.

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