SHANGHAI, July 31 ― Asian shares turned lower in a choppy session today as abysmal economic data from the United States and rising global Covid-19 cases darkened the mood, despite strong US tech earnings and manufacturing recoveries in China and Japan.

European shares were expected to open broadly lower across the board, with Euro Stoxx 50 futures down 0.28 per cent, German DAX futures 0.49 per cent lower and FTSE futures off 0.08 per cent.

The US dollar was also set for its worst month in a decade amid expectations the Fed will maintain its ultra-loose monetary policy for years.

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US GDP collapsed 32.9 per cent in the second quarter, the deepest decline on record, while jobless claims rose last week, adding to signs the momentum of economic recovery has slowed.

Those figures overshadowed positive manufacturing data from China and Japan. China's official Purchasing Manager's Index (PMI) data showed that factory activity grew in July for a fifth straight month and at a faster pace, defying expectations of a slowdown, while Japan's industrial output snapped four months of declines in June.

“We are seeing some tentative signs of an improvement in global trade flows as economies reopen, but the overhang from recessionary conditions in the developed world and rising infection rates are kind of a focus for investors at the moment,” said Ryan Felsman, senior economist at CommSec in Sydney.

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After rising in early trade, MSCI's broadest index of Asian shares outside Japan turned lower. It was last down less than 0.1 per cent.

Despite today's losses, the index was still set for its second consecutive month of gains, adding more than 7.5 per cent in July.

Australian shares were down 2.04 per cent and Seoul's Kospi ticked 0.64 per cent lower. Japan's Nikkei dropped 2.82 per cent as a stronger yen weighed on exporters.

Chinese blue-chips were last up 0.35 per cent in a session that swung repeatedly between gains and losses.

Futures continued to point to a higher open on Wall Street on Friday. Apple, Amazon, Facebook and Alphabet reported quarterly earnings on the same day for the first time ever, all topping Wall Street estimates.

“All of them punched the lights out with respect to their earnings numbers,” said National Australia Bank strategist Ray Attrill.

E-mini futures for the S&P 500 rose 0.2 per cent, and Nasdaq futures added 0.90 per cent.

US stock markets, oil prices and the dollar slid yesterday as the new data underscored the deep economic impact of the coronavirus and US President Donald Trump raised the possibility of delaying the November election.

On Wall Street, the Dow Jones Industrial Average fell 0.85 per cent, the S&P 500 lost 0.38 per cent and the Nasdaq Composite added 0.43 per cent.

In the currency market, the dollar slumped 0.40 per cent against the yen to 104.30, while the euro jumped 0.35 per cent to buy US$1.1888 (RM5.0405).

The greenback remains on course for its worst month in a decade, with the dollar index dropping 0.15 per cent to 92.655.

Crude oil recovered from an overnight slump, with global benchmark Brent crude rising 0.47 per cent to 43.14 a barrel. US light crude added 0.28 per cent to US$40.03 per barrel.

Gold also turned higher on the weaker dollar, with spot gold trading 0.61 per cent higher at US$1,971.52 per ounce, just short of record highs.

US benchmark 10-year Treasury notes yielded 0.5233 per cent, down from a US close of 0.541 per cent yesterday. The two-year yield touched 0.1133 per cent compared with a US close of 0.121 per cent. ― Reuters