GLOBAL MARKETS-Asian shares weaker as growth, virus worries temper tech boost

* MSCI Asia ex-Japan slightly lower; Nikkei drops 2.82%
* Europe equities seen opening lower; Wall Street futures
positive
* U.S. quarterly GDP posts biggest decline on record
* China, Japan post positive manufacturing data
* Asian stock markets: https://tmsnrt.rs/2zpUAr4

By Andrew Galbraith
SHANGHAI, July 31 (Reuters) - Asian shares turned lower in a
choppy session on Friday as abysmal economic data from the
United States and rising global COVID-19 cases darkened the
mood, despite strong U.S. 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 STXEc1 down 0.28%,
German DAX futures FDXc1 0.49% lower and FTSE futures FFIc1
off 0.08%.
The U.S. dollar was also set for its worst month in a decade
amid expectations the Fed will maintain its ultra-loose monetary
policy for years. U.S. GDP collapsed 32.9% 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.
After rising in early trade, MSCI's broadest index of Asian
shares outside Japan .MIAPJ0000PUS turned lower. It was last
down less than 0.1%.
Despite Friday's losses, the index was still set for its
second consecutive month of gains, adding more than 7.5% in
July.
Australian shares .AXJO were down 2.04% and Seoul's Kospi
.KS11 ticked 0.64% lower. Japan's Nikkei .N225 dropped 2.82%
as a stronger yen weighed on exporters. Chinese blue-chips .CSI300 were last up 0.35% in a session
that swung repeatedly between gains and losses.
Futures continued to point to a higher open on Wall Street
on Friday. Apple AAPL.O , Amazon AMZN.O , Facebook FB.O and
Alphabet GOOGL.O 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 ESc1 rose 0.2%, and Nasdaq
futures NQcv1 added 0.90%.
U.S. stock markets, oil prices and the dollar slid on
Thursday as the new data underscored the deep economic impact of
the coronavirus and U.S. President Donald Trump raised the
possibility of delaying the November election.
On Wall Street, the Dow Jones Industrial Average .DJI fell
0.85%, the S&P 500 .SPX lost 0.38% and the Nasdaq Composite
.IXIC added 0.43%.
In the currency market, the dollar slumped 0.40% against the
yen to 104.30 JPY= , while the euro jumped 0.35% to buy
$1.1888.
The greenback remains on course for its worst month in a
decade, with the dollar index =USD dropping 0.15% to 92.655.
Crude oil recovered from an overnight slump, with global
benchmark Brent crude LCOc1 rising 0.47% to 43.14 a barrel.
U.S. light crude added 0.28% to $40.03 per barrel.
Gold also turned higher on the weaker dollar, with spot gold
XAU= trading 0.61% higher at $1,971.52 per ounce, just short
of record highs. GOL/
U.S. benchmark 10-year Treasury notes US10YT=RR yielded
0.5233%, down from a U.S. close of 0.541% on Thursday. The
two-year yield US2YT=RR touched 0.1133% compared with a U.S.
close of 0.121%.

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