Europe's traders have tried to pull stock markets out of tech-led tumble as attention turned to whether the European Central Bank would signal September is its next likely point to cut interest rates.
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Thursday was already a busy day.
Japan's yen had scaled a six-week high amid speculation of an sustained intervention, while the equity markets were still shaky after chipmaker tariff worries gave the Nasdaq its worst day since December 2022 on Wednesday.
Bond markets were broadly steady and at $US1.0930 the euro was holding near a four-month peak against an unusually subdued dollar before the ECB meeting where the questions were all on when it cuts next.
Given the bank's policymakers have not pushed back against market expectations, BNP Paribas economist Luca Pennarola said "barring any shocks" September was their preferred date for the next rate cut.
His colleague Mariana Monteiro said it would be important to hear whether Thursday's decision - in which rates are expected to be kept unchanged - would be unanimous given an emerging split over a potentially spluttering economic recovery but also stubborn pockets of inflation.
The US dollar was loitering close to its weakest level in four months against a basket of currencies.
Comments from Federal Reserve officials have bolstered the case for September cut in the US
That in turn meant gold was perched near its recent record highs.
European stocks were battling to stay positive, with the STOXX 600 on track to snap a three-session losing streak.
Oil and gas boosted the benchmark index with a one per cent rise as the sector tracked higher crude prices.
Tech was 0.75 per cent lower again after a 4.4 per cent slump on Wednesday - also its worst day since December 2022 - following a report the United States was considering tighter curbs on exports of advanced semiconductor technology to China.
MSCI's broadest index of Asia-Pacific shares outside Japan has seen a sub-index of IT stocks drop 2.5 per cent overnight.
Tech-heavy South Korean shares slipped 1.5 per cent, while Taiwan stocks fell two per cent.
The yen's strength and the sharp drop in chip stocks took Japan's Nikkei down more than two per cent.
Broader risk sentiment also took a hit after Republican presidential candidate Donald Trump said Taiwan "did take about 100 per cent of our chip business" and should pay the US for its defence as it does not give the country anything.
China stocks had wavered as investors awaited policy news from a key leadership gathering in Beijing.
The Shanghai Composite index made a late push to end up 0.55 per cent although the tech sector still finished down.
The dollar index, which measures the US currency versus six peers, was 0.1 per cent higher at 103.78, not far from the four-month low of 103.64 it touched on Wednesday.
The yen hit a six-week high against the dollar at 155.375 in early trading after a sharp rise on Wednesday that had traders suspecting Japanese authorities were once again in the market supporting the currency. It was last at 156.
Bank of Japan data suggested Tokyo might have bought nearly six trillion yen ($A57 billion) last week to lift the frail yen away from the 38-year lows it has been rooted to since the start of the month.
In commodities, gold was 0.5 per cent higher at $US2,469 per ounce just below the record high of $US2,483.60 it touched on Wednesday.
Oil prices were on the rise again, with Brent futures 0.4 per cent higher at $US85.45 a barrel, while US West Texas Intermediate crude gained 0.7 per cent to $US83.43.
Australian Associated Press
