Global Markets: Asia shares tread lightly, await China policy meetingGlobal Markets: Asia shares tread lightly, await China policy meeting
Passersby wearing protective face masks are reflected on a screen displaying stock prices outside a brokerage in Tokyo

By Stanley White and Chris Prentice

TOKYO/WASHINGTON (Reuters) – Asian shares and Wall Street futures stepped back on Thursday as resurgent concerns about the long-term impact of the coronavirus outbreak offset some of this week’s earlier enthusiasm about economies re-opening.

Investors were also looking ahead to a key policy gathering in China that may yield more economic stimulus, while recent data from around the world reinforced views that a sustainable recovery may not come for several months.

MSCI’s broadest index of Asia-Pacific shares outside Japan <.MIAPJ0000PUS> fell 0.1%, having rallied around 3% so far this week. S&P 500 e-mini stock futures fell 0.54%.

Euro Stoxx 50 futures were down 1.02%, German DAX futures fell 0.92%, and FTSE futures were off 0.58%, pointing to a soft session in Europe.

Broad risk appetite has been checked somewhat by escalating tensions between the United States and China due to President Donald Trump’s criticism of Beijing’s handling of the coronavirus outbreak.

Australian shares <.AXJO>, which have been hampered by concerns about a trade row with China, pulled back slightly from a two-month high.

Japan’s Nikkei stock index <.N225> slid 0.05% after data showed the country’s exports collapsed in April.

Shares in China <.CSI300> fell 0.19% before the start of the annual parliament meeting on Friday.

The focus will be on Premier Li Keqiang’s 2020 work report on the opening day of the National People’s Congress (NPC), where he is expected to announce key economic targets and details on fiscal stimulus plans.

Global equities were buoyed this week as governments around the world gradually loosened their coronavirus lockdown restrictions, but many investors remain wary of the outlook as a raft of recent data suggested a full-blown recovery is likely some way off.

“Equities are still in an uptrend, but the pace of the rebound has been a little quick and we are running into resistance,” said Kiyoshi Ishigane, chief fund manager at Mitsubishi UFJ Kokusai Asset Management Co in Tokyo.

“The (global) services sector has been decimated. The level of unemployed suggests this recovery will take some time.”

On Wall Street, the S&P 500 <.SPX> gained 1.67% on Wednesday, but the positive mood did not last into Asian trade.

U.S. crude rose 1.79% to $34.09 a barrel, while Brent crude also rose 1.79% to $36.39 per barrel in a sign of easing concerns about a supply glut.

The dollar edged higher to $1.0956 per euro and rose to $1.2291 against the British pound.

The greenback also gained against the Australian and New Zealand dollars in a sign that some investors remain averse to risk.

Minutes from the U.S. Federal Reserve’s April meeting released on Wednesday showed policymakers reaffirmed a pledge to keep interest rates near zero until they are confident the economy is on track to recovery.

The U.S. government auctioned $20 billion of 20-year debt on Wednesday for the first time since 1986. The 20-year yield eased slightly to 1.1549% in Asia, while the yield on benchmark 10-year Treasury notes fell to 0.6639% as traders sought the safety of government debt.

Another $54 billion of 20-year bonds are expected over the next three months as the U.S. government ramps up spending to fund the economic recovery from the coronavirus pandemic.

(Reporting by Chris Prentice in Washington; Editing by Sam Holmes & Shri Navaratnam)