* Asian stock markets: tmsnrt.rs/2zpUAr4
* Risk aversion reappears when it comes to viruses
* Increasing infections in India’s rattlesnake energy markets
* Bond traders eagerly await the 20-year Treasury auction
TOKYO, April 21 (Reuters) – Asian equities and US futures fell on Wednesday as concerns over the resurgence of coronavirus cases in some countries cast doubt on strong global growth and demand for crude oil.
However, European equities look for a more promising start, with the Euro Stoxx 50 futures contract at 0.28%, the German DAX futures contract at 0.25% and the UK FTSE futures contract at 0.15%.
MSCI’s broad index of Asia-Pacific equities outside Japan fell 1.08%. Australian equities fell 0.56%, but equities in China recovered early losses and rose 0.29% due to positive earnings from the healthcare and banking sectors.
Stocks in Tokyo fell by 1.95% due to the increasing likelihood that Tokyo, Osaka and surrounding areas would be shut down due to a new wave of coronavirus infections.
S&P 500 e-mini-stock futures also fell 0.18%.
Crude contracts extend the declines from a one-month high on speculation that coronavirus restrictions in India, the world’s third-largest oil importer, will hurt energy demand.
Recent optimism about rising vaccination rates in the United States, Britain and Europe is shifting to concerns that coronavirus infections in India and the strengthening of travel restrictions will hamper the global economy.
‘Commodity prices and commodity currencies have weighed on renewed concern about the global economic recovery. “Many countries around the world, such as India and Brazil, have set new records for infections and deaths,” Commonwealth Bank of Australia analysts said in a research note.
“As long as the virus persists, there is a risk that virus mutants will develop and spread to other countries.”
Decline in Asian equities follows a bad day on Wall Street. The Dow Jones industrial average fell 0.75%, the S&P 500 lost 0.68% and the Nasdaq Composite fell 0.92% on Tuesday as investors sold airlines and travel-related shares for fear of a delayed recovery in global tourism .
Some tech stocks and companies that benefited from home demand may face further pressure after Netflix Inc saw a disappointing growth in subscriber statement for its movie streaming service, which dropped its shares by 11% in after-sales.
MSCI’s global equities index fell 0.3%.
U.S. crude fell 0.69% to $ 62.24 a barrel, while Brent crude fell 0.59% to $ 66.18 a barrel.
India, the second most populous country in the world, reported its worst COVID-19 mortality rate on Tuesday, with large parts of the country now locked up. India’s financial markets closed for a holiday on Wednesday.
The Norwegian krone fell for a second session on Wednesday, but the Canadian dollar and the Mexican peso confirmed. Analysts believe that more declines for the currencies of major oil exporters are likely if energy prices continue to fall.
The dollar index traded against a basket of six major currencies near a seven-week low, hit by a drop in US Treasury yields as some investors sought the security of government debt holdings.
Investors are keeping a close eye on a 20-year treasury auction later Wednesday, which will be a key measure of global fixed income demand.
Before the results of the auction, the yield on the standard ten-year treasury notes traded at 1.5626%, near a six-week low. The yield on 20-year treasury is 2.1481%, close to a minimum of seven weeks.
In the sign of growing risk aversion, spot gold traded at $ 1,783.39 per ounce, near a seven-week high reached on Monday.
Reporting by Stanley White; Edited by Lincoln Feast and Kim Coghill