SYDNEY, RAW – Asian shares have struggled to rally as super-strong US corporate earnings sucked funds out of emerging markets and into Wall Street, where records were falling almost daily.

More than one-third of S&P 500 is set to report quarterly results this week, headlined by Facebook, Tesla, Apple, Alphabet, Microsoft Corp and Amazon.

With just more than a fifth of the S&P 500 having reported, 88 per cent of firms have beaten the consensus of analysts’ expectations. That is a major reason global money managers have poured more than $US900 billion into US funds in the first half of 2021.

Nasdaq futures were up 0.1 per cent in early trade, while S&P 500 futures held steady.

As funds flock to Wall Street, Asian markets have been largely snubbed. MSCI’s broadest index of Asia-Pacific shares outside Japan has been trending sideways since March and was up just a fraction on Monday.

Japan’s Nikkei bounced 1.6 per cent in early trade, but that was off a seven-month low. South Korea Kospi has fared somewhat better thanks to demand for tech stocks but was little changed on Monday.

The week is also packed with US data that should underline the economy’s outperformance. Second-quarter gross domestic product is forecast to show annualised growth of 8.6 per cent, while the Fed’s favoured measure of core inflation is seen rising an annual 3.7 per cent in June.

The Federal Reserve meets on Wednesday and, while no change in policy is expected, chair Jerome Powell will likely be pressed to clarify what “substantial further progress” on employment would look like.

So far, the bond market has been remarkably untroubled by the prospect of eventual tapering, with yields on US 10-year notes having fallen for four weeks in a row to stand at 1.28 per cent.

The drop has done little to undermine the dollar, in part because European yields have fallen even further amid expectations of continued massive bond buying from the European Central Bank.

The single currency has been trending lower since June and touched a four-month trough of $US1.1750 last week. It was last at $US1.1770 and looked at risk of testing its 2021 low of $US1.1702.

The dollar has also been edging up on the yen to reach 110.57, but remains short of its recent peak at 111.62. The fall in the euro has lifted the dollar index to 92.891, a long way from its May trough of 89.533.

The rise in the dollar has offset the drop in bond yields to leave gold range-bound about $US1,800 an ounce.

Oil prices have fared better amid wagers demand will remain strong as the global economy gradually opens.

Brent was trading 23 cents firmer at $US74.33 a barrel, while US crude added 20 cents to $US72.27.