China's factory activity declined for a third straight month in June and weakness in other sectors deepened, official surveys showed on Friday, adding pressure for authorities to do more to shore up growth as demand falters at home and abroad.

The number of Americans filing new claims for unemployment benefits fell last week by the most in 20 months, the latest sign of the economy's resilience that could push the Federal Reserve to resume raising interest rates in July.

Asian stocks eased on Friday after a set of strong U.S. economic data bolstered the view that the Federal Reserve will likely keep interest rates higher for longer, while the yen breached a psychologically important barrier amid intervention worries.

The yen weakened past 145 per dollar on Friday, a level which kept speculators wary of potential intervention from Japanese authorities, while a faltering economic recovery in China also kept pressure on the yuan.

Oil prices kept to a tight range on Friday as soft Chinese data pointed to persistent economic headwinds in the world’s largest oil importer, although Brent was still on course for its first positive month in 2023.

Euro zone inflation has entered a new phase which could linger for some time, European Central Bank President Christine Lagarde said on Tuesday, outlining a lengthy fight against price growth that must dampen demand and force firms to curb prices.