GLOBAL MARKETS-Asian shares dither ahead of ECB outcome, euro near 2-mth lows

* Asian stock markets : https://tmsnrt.rs/2zpUAr4
* Nikkei, Australian shares hit multi-month highs
* South Korea's KOSPI slips leaving MSCI ex-Japan flat
* Euro at 2-month lows after weak eurozone PMI
* Market focus on ECB rate decision later in the day

By Swati Pandey
SYDNEY, July 25 (Reuters) - Asian shares were cautious on
Thursday, shrugging off a tech-fuelled rally on Wall Street
while the euro hovered near two-month lows as soft economic data
bolstered expectations of rate cuts in Europe.
Japan's Nikkei .N225 gained 0.5% to nearly three-month
highs while Australia's benchmark index .AXJO hit a new
12-year top on Wednesday.
South Korea's KOSPI .KS11 was the only index in the red as
leading chipmakers shed recent gains amid trade tensions between
Seoul and Tokyo.
That left the MSCI's broadest index of Asia-Pacific shares
outside Japan .MIAPJ0000PUS broadly unchanged.
On Wall Street, tech companies led the S&P 500 and the
Nasdaq to record highs on Wednesday after Texas Instruments Inc
TXN.N hinted the slowdown in semiconductor demand would not be
as long as feared. .N
Stock investors have generally been encouraged in recent
days by hopes of some headway in trade negotiations between the
United States and China, and expectations the European Central
Bank (ECB) and the U.S. Federal Reserve will ease monetary
policy soon.
Cementing such expectations, a series of purchasing manager
index (PMI) readings in the United States and Europe on
Wednesday were weaker than expected.
"Equities have largely brushed off weaker global conditions
given the prospects for central bank easing, and an earnings
season that has so far seen around 78% of S&P500 companies
beating estimates," said Tapas Strickland, director for
economics and markets at National Australia Bank.
The Dow .DJI , however, fell 0.29% following disappointing
earnings from Boeing Co BA.N and Caterpillar Inc CAT.N .
After the closing bell, Facebook FB.O announced
forecast-beating revenues for the second quarter, sending its
shares higher in extended trading.
The stock has surged over 56% so far this year, despite
warnings on future revenue growth from new data privacy rules
and forthcoming privacy-focused product changes. Market attention on Thursday will be squarely on the ECB
rate decision after PMI data showed euro zone manufacturing
contracted for the sixth straight month.
That dragged the single currency EUR=D3 to $1.1125, a
level not seen since late-May. It was last at $1.1136
"With a rate cut priced at 50%, markets are expecting at
least a dovish turn from (ECB chief) Mario Draghi," ANZ said in
a note.
In the United States, manufacturing activity slowed to a
10-year low in early July with production volumes and purchases
falling.
The dollar index .DXY , tracking the greenback against six
major currencies, nudged lower to 97.683. Against the Japanese
yen, the dollar was a touch higher at 108.20.
The weak global backdrop saw bond prices racing with U.S.
10-year yields US10YT=RR off 3.3 basis points at 2.05%. German
10-year Bund yields DE10YT=RR eased to -0.38% while the
Feb-2029 Bund hit a record low yield of -0.42%. Sterling GBP= was last trading at $1.2484, after falling
for several sessions as market participants feared the looming
possibility of a no-deal Brexit under Britain's new prime
minister, Boris Johnson.
"If talks between the UK and EU break down, the GBP could
see further losses," said Steven Dooley, currency strategist at
Western Union Business Solutions.
In commodities, U.S. crude CLc1 added 12 cents to $56 per
barrel while Brent crude LCOc1 climbed 4 cents to $63.20.
Spot gold XAU= slipped a tad to $1,424.62 an ounce, just
short of last week's peak of $1,452.60.

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(Editing by Jacqueline Wong)