Euro, bond yields rise on buoyant business surveys

The European single currency and euro zone government bond yields rose on Wednesday after a survey showed the bloc's manufacturing businesses had their best month of growth in six-and-a-half years.

U.S. stocks looked set to open lower, with Wall Street futures down 0.3 percent. 

Forecast-beating surveys in the euro zone's two biggest economies, France and Germany , helped pull the euro up against the dollar EUR=EBS, which had wobbled against the yen overnight on comments from U.S. President Donald Trump. 

The pan-European STOXX 600 however, was dragged down by unloved media stocks. WPP shed more than 10 percent after the world's largest advertising group cut its sales forecast.

"At a broad level what PMIs are telling you is that the momentum of the euro zone recovery continues and the strength of the euro is not containing it," said Investec economist Philip Shaw. 

Earlier, MSCI's broadest index of Asia-Pacific shares outside Japan inched up to a two-week high, before pulling back. 

Australian stocks fell 0.2 percent on the day and South Korea's KOSPI ended 0.1 percent higher.

Japan's Nikkei bucked the trend and rose 0.3 percent, taking its cues from Wall Street's technology-led rally on Tuesday. 

The dollar wobbled against the yen after Trump told a rally he would be willing to risk a government shut-down to secure funding for a wall on the U.S. border with Mexico. 

Financial markets have been buffeted in recent weeks by heightened tensions on the Korean peninsula, turmoil in the White House, and growing doubts about Trump's ability to fulfil his economic agenda. 

A gathering of global central bankers this week in Jackson Hole, Wyoming, has prompted investors to rebalance their currency positions, leading them to reduce some of their short dollar bets.