Asian shares edged down on Friday after weak corporate earnings dented Wall Street, while the dollar clawed back some losses after marking its worst monthly performance in four years against a basket of six major currencies.
Shares got little help from China's official Purchasing Managers' Index (PMI) for April, which showed manufacturing sector barely grew last month, holding slightly above the level separating expansion from contraction.
The reading of 50.1 was barely above the 50-point mark that separates growth from contraction, but was slightly better than a consensus estimate for a reading of 50, as activity in the world's second-largest economy continues to cool.
"Due to active factors in both domestic and international markets as well as rising commodities prices, companies are prudently optimistic for economic growth in the future," Zhao Qinghe, an official of the bureau said in a statement accompanying the report.
MSCI's broadest index of Asia-Pacific shares outside Japan was slightly down, with activity subdued, as several countries in Asia are closed for Labour Day. Many European markets will also close later for May Day.
On Wall Street on Thursday, the three major stock indexes posted modest gains for the month of April, but ended the session with losses over 1% after weak earnings reports.
Upbeat US economic data also revived expectations that US Federal Reserve policymakers will consider raising interest rates, after a drop in US jobless claims, a rise in consumer spending, wage gains and a jump in Midwest business activity suggested the economy is showing signs of recovery.
"Our view remains that September is a more likely time for the first rate hike, but we expect several on the committee to argue for a rate hike in June," strategists at Barclays wrote in a note to clients.
Japan's Nikkei stock index was down about 0.2%, after marking its biggest loss in four months in the previous session.
A spate of Japanese economic data released before the market open showed consumer inflation rose slight more than forecast, while the jobless rate dropped. Household spending fell on year but rose from the previous month. The data came a day after the Bank of Japan held monetary policy steady as expected.
Against the Japanese currency, the dollar edged up about 0.2% to 119.64 yen, pulling well away from an overnight low of 118.50 yen.
The euro edged down on the day to $1.1210, after scaling a two-month peak of $1.1267 on Thursday.
Underpinning the single currency, Greece made its biggest concessions yet in talks with its lenders to avert bankruptcy.
That helped lift German Bund yields on Thursday with the benchmark 10-year yield reaching 0.386%, adding some 20 basis points in two days and further burnishing the euro's appeal.
The dollar index added about 0.3% to 94.881, after skidding roughly 3.7% in April and touching a more than two-month low of 94.399 on the final day of the month.
In commodities trading, crude oil prices logged their best monthly gains in six years in April, helped by a weaker dollar and bets that a supply glut would ease.
Brent crude slipped 0.2% to $66.64 a barrel, after reaching a 2015 peak of $66.93 and adding 21% in April. US crude erased earlier losses and inched up about 0.1% to $59.67, after hitting a 2015 high of $59.85 in post-settlement trading and gaining 25% for last month.
