TOKYO/WASHINGTON – Asian stocks and Wall Street futures fell on Thursday as spiking coronavirus cases in some U.S. states and China crushed hopes of a quick global economic comeback from the pandemic.

S&P 500 mini futures EScv1 fell 1.2% in early Asian trade while MSCI’s broadest index of Asia-Pacific shares outside Japan.

MIAPJ0000PUS lost as much as 1%.

Japan's Nikkei .N225 lost 1.3% while in mainland China, bluechip CSI300 shares .CSI300 shed 0.1% in early trade.

On Wall Street, the S&P 500 .SPX lost 0.36% on Wednesday but tech-heavy Nasdaq .IXIC added 0.15% due to hopes of increased demand for various online services due to the epidemic.

Several U.S. states including Oklahoma, where President Donald Trump plans a campaign rally on Saturday, reported a surge in new coronavirus infections.

The daily count of infections also hit a new benchmark in California and Texas, while Florida and Arizona also recorded the second-highest daily increases.

China’s capital cancelled scores of flights, shut schools and blocked off some neighborhoods as it ramped up efforts to contain a coronavirus outbreak that has fanned fears of wider contagion.

“It is a big shock to markets that China, which appears to have successfully quashed the disease, is seeing a second wave. And in the U.S. we see record cases in many states,” said Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities.

“All this suggests that the more you re-start the economy, the more infections you have. People have thought the economy will quickly recover in July-September after dismal April-June. But that is now becoming uncertain.”

Investors rushed to the safety of bonds, with the 10-year U.S. Treasuries yield US10YT=RR falling 3 basis points to 0.704%.

In the currency market, the safe-haven yen rose about 0.3% to 106.72 per dollar JPY= while the U.S. dollar also firmed against risk-sensitive currencies.

The euro dipped 0.1% to $1.1235 EUR= while the Australian dollar AUD=D4 lost 0.4% to $0.6852, also hit by worse than expected employment data.

Australia’s unemployment rate jumped to the highest in about two decades in May as nearly a quarter of a million people lost their jobs due to the coronavirus pandemic-driven shutdowns.

Oil prices also dropped with U.S. crude futures CLv1 falling 1.9% to $37.49 per barrel, while international benchmark Brent LCOc1 lost 1.4% to $40.14 a barrel.