* Asian stock markets : https://tmsnrt.rs/2zpUAr4
* Nikkei down as U.S. stock futures fall back
* China talks stimulus, but economic damage already done
* Euro near 4-week high as Lagarde flags July hike
SYDNEY, May 24 (Reuters) - Asian shares slid on Tuesday as
relief at a rally on Wall Street was punctured by a retreat in
U.S. stock futures, while the euro held near one-month highs as
odds narrowed on a July rate rise from the ECB.
After ending Monday firmer, Nasdaq futures lost 1.5%,
with traders blaming an earnings warning from Snap
which saw shares in the Snapchat owner tumble 28%.
S&P 500 futures slipped 0.9%, surrendering some of
Monday's 1.8% bounce. EUROSTOXX 50 futures fell 0.5%
and FTSE futures 0.6%.
MSCI's broadest index of Asia-Pacific shares outside Japan
dipped 0.8% in hesitant trading. Japan's Nikkei
fell 0.8% and Chinese blue chips 1.1%.
Markets had taken some comfort from U.S. President Joe
Biden's comment on Monday that he was considering easing tariffs
on China, and from Beijing's ongoing promises of stimulus.
Unfortunately, China's zero-COVID policy, with attendant
lockdowns, has already done considerable economic damage.
"Following disappointing April activity data, we have
downgraded our China GDP (gross domestic product) forecast again
and now look for 2Q GDP to contract 5.4% annualised, previously
1.5%," warned analysts at JPMorgan.
"Our 2Q global growth forecast stands at just 0.6%
annualised rate, easily the weakest quarter since the global
financial crisis outside of 2020."
Early surveys of European and U.S. manufacturing purchasing
managers for May due on Tuesday could show some slowing in what
has been a resilient sector of the global economy.
Japan's manufacturing activity grew at the slowest pace in
three months in May amid supply bottlenecks, while Toyota
announced a cut in its output plans.
Analysts have also been trimming growth forecasts for the
United States given the Federal Reserve seems certain to hike
interest rates by a full percentage point over the next two
The hawkish message is likely to be driven home this week by
a host of Fed speakers and minutes of the last policy meeting
due on Wednesday.
The European Central Bank is also turning more hawkish, with
President Christine Lagarde surprising many by opening the door
for a rate rise as early as July.
That saw the euro at $1.0665, having bounced 1.2%
overnight in its best session since early March. It now faces
stiff chart resistance around $1.0756.
The dollar also retreated versus sterling and a range of
currencies, taking the dollar index down 0.9% overnight. It was
last up a fraction at 102.240.
Meanwhile the euro had jumped sharply to 136.05 Japanese yen
, while the dollar faded a little to 127.65 yen.
The pullback in the dollar helped gold regain some ground to
$1,855 an ounce.
Oil prices were caught between worries over a possible
global downturn and the prospect of higher fuel demand from the
U.S. summer driving season and Shanghai's plans to reopen after
a two-month coronavirus lockdown.
U.S. crude eased 66 cents to $109.63 per barrel,
while Brent lost 70 cents to $112.74.
(Editing by Kenneth Maxwell and Kim Coghill)