REFILE-GLOBAL MARKETS-Asian shares slip on worries about global recovery; eyes on U.S. fiscal stimulus

(Corrects first paragraph to remove extraneous word)
* Asian stock markets : https://tmsnrt.rs/2zpUAr4
* Asian shares in the red, Japan closed for holiday
* Lofty share valuations, fading U.S. stimulus major risks
* Fresh wave of coronavirus infections in Europe also a
worry
* Currencies steady, U.S. dollar near 3-1/2 mth low on yen

By Swati Pandey
SYDNEY, Sept 21 (Reuters) - Asian shares slipped on Monday
on fears the global economy may sputter for a while due to a
resurgence of coronavirus infections in Europe, while fading
hopes for U.S. fiscal stimulus also weighed.
The gloom spread to early European trade with pan-region
Euro Stoxx 50 futures STXEc1 and German DAX futures FDXc1
both down 0.9%, while France's CAC 40 futures FCEc1 stumbled
0.6%. Futures for London's FTSE FFIc1 were off 1.1%.
S&P 500 e-minis ESc1 declined 0.6%, also pointing to a
weak start for Wall Street on Monday.
Most major Asian indexes were in the red and MSCI's broadest
index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was
0.6% weaker at 565.75.
Australia's .AXJO benchmark index slipped 0.7% while New
Zealand's .NZ50 faltered 0.8%. Chinese shares were lower too
with the blue-chip index .CSI300 down 0.8%. Japanese markets
were closed for a public holiday.
"While the economic recovery continues, momentum is clearly
slowing," Kathy Bostjancic, chief U.S. financial economist at
Oxford Economics, wrote in a note.
"The second phase of the recovery will likely be bumpy and
fraught with pitfalls," Bostjancic added.
"The development of the pandemic remains the overriding
factor driving the economy, discussions on the fiscal policy,
and ultra loose policy by the Fed."
The biggest threat to world growth is a resurgent pandemic -
coronavirus cases have now surpassed 30 million globally - with
analysts fearing growth and inflation could surprise on the
downside in the coming year. A lack of material development on
U.S. stimulus package is also an overhang, they said.
Adding to worries, European countries from Denmark to Greece
announced new restrictions on Friday to curb surging coronavirus
infections in some of their largest cities, while Britain was
considering a new national lockdown. "Where is the inspiration for the equity bulls, I ask? We
have diminishing prospects of fiscal stimulus, crazy valuations
and a firm focus on an ugly U.S. election and COVID shutdowns,
which suggest short-term risks for equities," said Pepperstone
strategist Chris Weston.
The dollar =USD slipped 0.1% against a basket of major
currencies to 92.848.
Against the safe haven yen JPY= , the greenback eased 0.2%
to 104.33 to drift closer to a recent 3-1/2 month trough.
The euro EUR= was up 0.16% at $1.1855 while the
risk-sensitive Australian dollar AUD=D3 was also slightly
higher at $0.7314. The British pound GBP= was up 0.25% at
$1.2947.
Currency strategists said the dollar weakness may signal
more volatility ahead of the Nov. 3 U.S. elections where
Republican President Donald Trump will face off against
Democratic challenger Joe Biden.
Pepperstone's Weston expects the safe-haven yen to remain
well bid.
"In a world where real rate differentials increasingly drive
capital flows, in developed market, FX Japan has the highest and
positive real yields, and even more so when adjusting for
hedging costs," Weston said.
"This makes the JPY very attractive, especially against the
GBP and USD, where real rates are not just negative but in the
case of the Fed, they are actively seeking lower rates out."
In commodities, U.S. crude CLc1 slipped 36 cents to $42.79
a barrel. Brent crude LCOc1 fell 37 cents to $40.74.
Gold was slightly higher, with spot prices XAU= at $1,950.8 an
ounce. GOL/

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Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
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(Editing by Sam Holmes and Edwina Gibbs)