Asian shares took a breather from their recent rally on Thursday as investors positioned for month- and quarter-end flows, while the Japanese yen tested fresh lows against the euro and a surging Swiss franc.

Malaysia’s economic growth may moderate further in 2026 as global demand softens and external headwinds weigh on exports, according to Australia and New Zealand Banking Group (ANZ).

Eurozone economic growth continues to hold up as Germany's budget largesse props up sentiment and offsets turmoil in France, but more weakness may be ahead as US tariffs start to exert their full effect, key data showed on Tuesday.

Demand for British exports declined at the fastest pace since April, when US President Donald Trump announced his global tariffs, according to a closely watched survey.

US business activity slowed for a second straight month in September, and though firms complained about tariffs raising costs, they were not raising prices for their goods and services, which bodes well for the inflation outlook.

Stocks began the day on the back foot on Wednesday in Asia after declines on Wall Street overnight following comments from Federal Reserve (Fed) Chair Jerome Powell that gave little indication about the future path of interest rates.