Asia stocks hit 27-month highs on Thursday as softer U.S. data narrowed the odds on a September rate cut there, boosting bonds and commodities while dragging on the dollar.

Oil prices fell in early trade on Thursday after U.S. employment and business activity data came in weaker than expected, in signs the economy may be cooling in the world's top oil consuming nation.

The dollar was on the back foot on Thursday after U.S. economic data continued to point to slowing growth, although that gave little relief to the yen, which was pinned around a 38-year low that kept the market on alert for government intervention.

Growth across Britain's services companies slowed by less than first thought in June but it still ebbed to a seven-month low, according to a survey on Wednesday that pointed to modest economic growth momentum for the incoming government.

Overall business growth across the euro zone slowed sharply last month as a solid expansion in the bloc's dominant services industry failed to offset a further deterioration in manufacturing, a survey showed on Wednesday.

China's services activity expanded at the slowest pace in eight months and confidence hit a four-year low in June, dragged by slower growth in new orders, a private-sector survey showed on Wednesday, suggesting more economic stimulus is needed.