Asian shares and the euro fell on Thursday on concerns about global growth driven by higher oil prices and data showing the euro zone may slip into recession, fanning fresh worries about Greece's debt restructuring challenges.
MSCI's broadest index of Asia Pacific shares outside Japan slid 0.6%, having consolidated from recent rallies after the much-awaited deal for a 130 billion euro Greek bailout was sealed earlier in the week. Sectors sensitive to growth cycles, including technology and materials, underperformed.
Financial spreadbetters expected major European markets to open barely changed.
"Now that the Greece's second rescue package has been decided and priced into the market, markets are already looking for the next problem," said Yoshihiko Tabei, general manager of capital markets at Kazaka Securities.
"And that next problem is Europe's fiscal reform and how those austerity measures will be achieved across the bloc."
Japan's Nikkei average bucked the regional trend, reversing course from early falls to gain 0.5%, partly supported by a weaker yen, which fell to a seven-month low against the dollar on Wednesday.
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Copper eased 0.2% to $8,416 a tonne as perceived manufacturing sector weakness in major economies discouraged investors from further buying of industrial metals.
A Reuters poll from Japan on Thursday showed manufacturing sentiment in February slid to its lowest since the aftermath of the March 2011 earthquake, indicating the world's No.3 economy may struggle to recover quickly from a slump on weak global demand and a strong yen.
This followed Wednesday's weak euro zone service sector activity, which weighed on US and European shares. An unexpected drop in Markit's Eurozone Services Purchasing Managers' Index revived fears of the economy sinking into recession and raised doubts over the Greece's ability to revive its economy and push fiscal reforms needed under the just-agreed bailout programme.
Fitch's widely expected downgrade of Greece after a bond swap agreement, added to the negative tone, sparking a sell-off in Greek bank shares on recapitalisation worries.