The U.S. services sector slowed in July, but businesses faced higher prices for inputs as demand continued to hold up, suggesting a long and slow road to low inflation.

American employers announced fewer layoffs in July than the year before, marking the first year-over-year decrease in more than a year and bolstering prospects that a resilient labor market will help the economy avoid a recession.

New orders for U.S.-made goods surged in June, boosted by strong demand for transportation equipment and other goods, showing some pockets of strength in manufacturing despite higher interest rates.

The number of Americans filing new claims for unemployment benefits rose slightly last week, while layoffs dropped to an 11-month low in July as labor market conditions remain tight.

Japan's economy likely grew an annualised 3.1% in April-June to mark a third straight quarter of expansion, according to a Reuters poll, helped by resilience in exports despite slowing global demand.

Asian shares were subdued on Thursday after Fitch downgraded U.S. sovereign debt sparking profit-taking, with investors now shifting focus to Bank of England's rate decision and earnings from Apple (NASDAQ:AAPL) and Amazon.