* Asian stock markets: tmsnrt.rs/2zpUAr4
* Risk aversion resurfaces as the concerns of the virus return
* Rising infections in India are disrupting energy markets
* Bond traders are eagerly awaiting a 20-year Treasury auction
TOKYO, April 21 (Reuters) – Asian stocks and US futures fell on Wednesday as concerns about the resurgence of coronavirus cases in some countries called into question the strength of global growth and demand for crude.
Still, European equities looked poised for a more promising start, with Euro Stoxx 50 futures 0.28%, German DAX futures 0.25% and British FTSE futures 0.15%.
MSCI’s broader Asia-Pacific stock index outside of Japan fell 1.08%. Shares in Australia fell 0.56%, but shares in China recovered anticipated losses and rose 0.29% due to positive gains in the healthcare and banking sectors.
Stocks in Tokyo fell 1.95% due to the growing likelihood that Tokyo, Osaka and surrounding areas would be blocked due to a new wave of coronavirus infections.
S&P 500 online stock futures also fell 0.18%.
Gross futures declined from a one-month high to speculate that coronavirus restrictions in India, the world’s third-largest oil importer, will affect energy demand.
Recent optimism about rising vaccination rates in the United States, Britain and Europe worries that coronavirus infections in India and tightening travel restrictions will act as a brake on the global economy .
“Renewed concerns about the global economic recovery affected commodity prices and currencies. Many countries around the world, such as India and Brazil, are setting 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 mutant viruses will develop and spread to other countries.”
Falling Asian stocks continued one day to baffle 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 stock-related stocks. travel for fear of a delayed recovery of world tourism.
Some tech stocks and companies that benefited from the demand for stay at home could face additional pressures after Netflix Inc reported disappointing subscriber growth for its movie streaming service, which dropped its shares 11% in off-hours trading.
MSCI’s global stock index fell 0.3%.
U.S. crude fell 0.69% to $ 62.24 a barrel, while Brent crude fell 0.59% to $ 66.18 per barrel.
India, the second most populous country in the world, reported on Tuesday the worst daily balance of COVID-19, with large parts of the country now closed. India’s financial markets closed on Wednesday for holidays.
The Norwegian krone fell on Wednesday for a second session, but the Canadian dollar and the Mexican peso remained stable. Analysts say more declines in the currencies of major oil exporters are likely to occur if energy prices continue to fall.
The dollar index against a basket of six major currencies traded near a seven-week low, affected by a decline in U.S. Treasury yields as some investors sought the security of keeping government debt .
Investors are watching a 20-year cash auction closely on Wednesday, which will be a major indicator of global fixed-income demand.
Prior to the auction results, the yield on 10-year benchmark Treasury notes was trading at 1.5626%, close to a six-week low. 20-year Treasury yields stood at 2.1481%, close to the seven-week low.
As a sign of growing risk aversion, spot gold was trading at $ 1,783.39 an ounce, near a seven-week high reached on Monday.
Reports by Stanley White; Edited by Lincoln Feast and Kim Coghill