* U.S. stock futures negative in Asia
* Australia, Japan markets poised for drop
* Dow posts worst plunge since 1987
* Asian stock markets: https://tmsnrt.rs/2zpUAr4
SINGAPORE, March 13 (Reuters) - Asia's stock markets were
hammered on Friday as panic gripping world financial markets
deepened and even safe-haven assets such as gold and bonds were
ditched to cover losses in the wipeout.
Australia's benchmark .AXJO fell as much as 7% and is on
track for its worst week on record. New Zealand's index was last
down more than 8%, its biggest ever intraday drop.
Japan's Nikkei .N225 fell 7%, while in Korea the Kosdaq
.KQ11 fell 8%, triggering a 20-minute trading halt.
Currency trading was erratic amid poor liquidity and a rush
to secure financing in dollars, the world's top funding
currency. FRX/
After its worst crash since Black Monday in 1987 overnight,
Dow futures YMc1 are down about 1% in Asia, while S&P 500
futures ESc1 are off 0.7%.
"There is a sense of fear and panic," said James Tao, an
analyst at stockbroker Commsec in Sydney, where phones at the
high-value client desk rang non-stop.
"It's one of those situations where there is so much
uncertainty that no-one quite knows how to respond...if it's
fight or flight, many people are choosing flight at the moment."
The plunge, as the coronavirus pandemic spreads, gathered
pace after U.S. President Donald Trump spooked investors with a
move to restrict travel from Europe, and after the European
Central Bank disappointed markets by holding back on rate cuts.
Trade was halted on the S&P 500 .SPX. after it hit
downdraft circuit breakers. It fell further when trade resumed,
eventually losing 9.5% to close 27% below February's peak.
Gold XAU= , usually a safe harbour in times of panic, fell
3.5%, yields on long-dated U.S. Treasuries shot up, and in
currency markets, investors scrambled for dollars. US/ GOL/
"We worry that there could be a chance of a dollar funding
squeeze," said Stuart Oakley, Nomura's global head of flow FX in
Singapore, as businesses scramble to borrow dollars to cover
liabilities.
"When everyone does that at the same time, it can result in
a massive demand for dollars. And ultimately...there becomes a
shortage, and the dollar funding level explodes."
In a televised address late on Wednesday, U.S. President
Donald Trump imposed restrictions on travel from Europe to the
United States, shocking investors and travellers.
Traders were disappointed after hoping to see broader
measures to fight the spread of the virus and blunt its expected
blow to economic growth.
The New York Federal Reserve surprised by pumping huge
amounts of cash into the banking system, aiming to head off the
sort of dislocation that saw markets seize up during the
financial crisis.
After adding $500 billion on Thursday, it will inject
another $1 trillion today in an effort to stop borrowing costs
from rising.
MSCI's gauge of stocks across the globe .MIWD00000PUS shed
9.51% and was down more than 20% from its 52-week peak.
The VIX volatility index .VIX - Wall Street's "fear gauge"
- and an equivalent measure of volatility for the Euro Stoxx 50
.V2TX hit their highest since the 2008 financial crisis.
In early Asia currency trade volumes were light and tight
liquidity exaggerated moves. The dollar handed back some gains
to the yen, pound and franc and Australian dollar AUD=D3
lifted almost 1% from an 11-year low to $0.6271.
The euro EUR= found footing at $1.1184 after falling as
far as $1.1054 overnight.
(Editing by Sam Holmes)