BofA Global Research said it now expected two more quarter percentage point interest rate hikes from the U.S. Federal Reserve this year, taking its terminal rate forecast to 5.5% to 5.75%.

China's economy stumbled in May with industrial output and retail sales growth missing forecasts, adding to expectations that Beijing will need to do more to shore up a shaky post-pandemic recovery.

The U.S. dollar rallied in Asian trading on Thursday after the Federal Reserve signalled rate hikes later in the year, while China's and New Zealand's currencies fell on signs of weakness in those economies.

Euro zone industrial production rebounded more than expected in April after a slump in March, as a surge in the output of capital goods such as buildings and equipment offset reduced production of consumer goods, data showed on Wednesday.

U.S. producer prices fell more than expected in May as the costs of energy goods and food declined, signaling that inflation pressures were abating throughout the economy and could eventually provide relief to consumers.

China's industrial output rose 3.5% in May from a year earlier, official data showed on Thursday, slightly missing expectations, as faltering demand at home and abroad adds pressure on policymakers to shore up a shaky economic recovery.