GLOBAL MARKETS-Stocks run out of steam on U.S. job jitters, yen gains

* U.S. stimulus bill awaited, jobless figures dreaded
* Nikkei falls 4%
* Dollar jumps vs Aussie and kiwi
* Asian stock markets: https://tmsnrt.rs/2zpUAr4

By Tom Westbrook
SINGAPORE, March 26 (Reuters) - A two-day equities rally
lost momentum on Thursday, and investors sold riskier
currencies, as stimulus negotiations dragged on in Washington
and investors fretted over a likely spike in U.S. jobless
claims.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS wobbled either side of flat. Japan's Nikkei
.N225 slumped 4% and U.S. stock futures ESc1 fell 1%.
The dollar climbed around 1% against the Australian and New
Zealand dollars and the yen rose 0.4% against the dollar as
investors sought shelter. FRX/
"We are not out of the woods just yet," said Stephen
Daghlian, at brokerage CommSec in Sydney. "There are plenty of
risks in the next couple of weeks."
First among them are initial jobless claims in the United
States due at 1230 GMT, with forecasts in a Reuters poll ranging
from 250,000 claims all the way up to 4 million.
U.S. Federal Reserve Chairman Jerome Powell is also due to
appear on NBC television around 1100 GMT.
The Fed's promise of unlimited bond buying has eased some of
the virus-driven financial stress this week. But Powell is also
likely to be asked about the real economy, and the apparent
divide between health officials and President Donald Trump as to
how quickly the country can return to work. Meanwhile, as Senate leaders in United States hoped to vote
on the stimulus package late in the Washington night, markets'
patience and optimism are beginning to waver. "There has been so much stimulus thrown at this," said Jun
Bei Liu, portfolio manager at Tribeca Investment Partners in
Sydney.
"But the positivity related to it is really just sentiment,"
she said. "A lot of companies have withdrawn earnings
guidance...these are still ahead of us. We don't know how bad it
could be."
Hong Kong's Hang Seng .HSI was down 0.5% by mid-morning
while regional trade was mixed. Indexes in China posted meagre
gains and Australia, Indonesia and Thailand advanced.

JOBLESS CLAIMS TO TEST BOUNCE
The money at stake in the stimulus bill amounts to nearly
half of the $4.7 trillion the U.S. government spends annually.
But it also comes against a backdrop of bad news as the
coronavirus spreads and more signs of economic damage.
Singapore's economy suffered its biggest contraction in a
decade in the first quarter, data showed on Thursday, as the
coronavirus pandemic prompted the city-state to cut its
full-year GDP forecast and plan for a deep recession.
Spain's coronavirus death toll has overtaken China's and a
total of 21,221 people have died globally. California Governor Gavin Newsom told reporters on Wednesday
that a million Californians had already applied for jobless
benefits this month - a number that knocked stocks from session
highs and has analysts bracing for even worse to come.
RBC Capital Markets economists had expected a national
figure over 1 million in Thursday's data, but say "it is now
poised to be many multiples of that," as reduced hours across
the country drive deep layoffs.
"Something in the 5-10 million range for initial jobless
claims is quite likely," they wrote in a note. That compares to
a 695,000 peak in 1982.
Citi Private Bank said the peak could reach 15-18% of the
total U.S. workforce, some 25 million people.
In currencies, the mood was to duck and cover. The
Australian dollar AUD=D3 fell 1.3% to $0.5879 and the pound
GBP=D3 fell half a percent to $1.1833.
The safe haven yen JPY= rose to 110.70 per dollar.
Oil steadied with stimulus hopes offsetting fears of
plunging demand. U.S. crude CLc1 futures slipped 35 cents
to$24.14 per barrel and Brent crude futures LCOc1 fell 0.9% to
$27.15. O/R
Gold XAU= fell 1% to $1,597.91 per ounce. GOL/

(Editing by Shri Navaratnam and Jacqueline Wong)