Global Markets React to Weak U.S. Factory Data and Rising Geopolitical Tensions

Asian shares and U.S. Treasury yields fell following weak U.S. manufacturing data, sparking fears of an economic downturn. Japan's Nikkei dropped sharply, while geopolitical tensions further impacted market sentiment. The yen and Swiss franc rose on safety bids as investors sought safe havens. Focus now turns to U.S. nonfarm payrolls for further economic clues.

Asian shares and U.S. Treasury yields fell on Friday, triggering fears of an economic downturn after weaker-than-expected U.S. manufacturing data. Japan's Nikkei experienced its worst day in over four years, partly due to a surging yen and uncertainty over domestic interest rates.

U.S. manufacturing activity hit an eight-month low in July, causing investors to adopt risk-off strategies. Geopolitical tensions, exemplified by recent Israeli military actions, further unrest and market volatility.

MSCI's Asia-Pacific index slumped, mirroring Wall Street's decline. The yen and Swiss franc gained on safe haven bids, while U.S. Treasury yields reached six-month lows. All eyes are now on the U.S. nonfarm payrolls report for further insights into the economy.

(With inputs from agencies.)