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Hong Kong - Most Asian stock markets sank on Thursday after US growth data fell well short of forecasts, with the dollar around two-month lows against the euro as the chances of an interest rate hike in early summer faded.
The single currency was also supported by hopes Greece will reach a bailout reform deal with its creditors.
Tokyo tumbled 2.69% to 19 520.01 as exporters were hit by the stronger yen, while Shanghai fell 0.78% to 4 441.65.
Hong Kong shed 0.94% to 28 133.00
Sydney slipped 0.83% to close at 5 790 - its third-straight day of declines - while Seoul fell 0.72% to end at 2 127.17.
The Commerce Department said Wednesday that the US economy grew at an annualised rate of 0.2% in January to February, far short of the 1.0% projected by analysts. The result is the latest indicating weakness in the world's number one economy.
Later in the day the US Federal Reserve said the slowdown was due "in part" to transitory factors and expansion should continue at a "moderate pace".
That suggested the Fed still expects to begin a slow series of rate rises in the coming months, though not likely in June as many analysts had been expecting until recently.
"The jury is still out on whether the weakness points to a more structural slowdown in the economy," Mark Lister, head of private wealth research at Craigs Investment Partners, told Bloomberg News.
"While plenty of people are expecting the rate hike to be pushed back even to 2016, it's important to watch the next piece of economic news to gauge whether the weakness we've seen was a one-off or the beginning of a trend."
The news pushed Wall Street's main indexes lower. The Dow shed 0.4%, the S&P 500 dropped 0.37% and the Nasdaq fell 0.63%.
The dollar also came under further pressure as the likelihood of a rate hike, which tends to lift the currency, slimmed.
READ: Dollar dives vs euro after US growth disappoints
The greenback was at ¥118.80 on Thursday, slipping from ¥119.02 in New York.
A decision by the Bank of Japan to stand pat on monetary policy also provided yen support.
READ: Yen picks up after BoJ holds fire on stimulus
Traders remained upbeat on the euro with Greece prepared to hand its creditors a series of reform measures as it looks to unblock much-needed cash to service its debts and avert a default that would likely see it crash out of the eurozone.
At one point the euro bought $1.1122 but eased to sit at $1.1103 in the afternoon. It was also at ¥132.31 on Thursday. While that compares with $1.1128 - a level not seen since March 3 - and ¥132.45 in New York, it is still sharply up from $1.0998 and ¥130.90 earlier on Wednesday in Asia.
Dealers seemed unaffected by a decision by Moody's to downgrade Greece's debt further into junk territory, citing "high uncertainty" Athens can reach an agreement.
On oil markets US benchmark West Texas Intermediate for June was up 62 cents at $59.20 in afternoon trade, while Brent for June rose 37c to $66.21 a barrel.
Gold fetched $1 205.76 against $1 208.05 late on Wednesday.
In other markets:
- Taipei fell 0.34% to 9 820.05.
Taiwan Semiconductor Manufacturing shed 1.01% to Tw$147.0 while Hon Hai was 0.11% lower at Tw$92.0.
- Wellington rose 0.88% to 5 791.34.
Fletcher Building was up 1.22% at NZ$8.31 and Trade Me gained 0.26% to NZ$3.82.
- Manila sank 1.41% to 7 714.82.
Banco de Oro was 0.91% lower at 109 pesos while Philippine Long Distance Telephone fell 3.12% to 2 798 pesos but Metrobank closed 0.54% higher at 93.50 pesos.
