US futures rise on earnings boost, yen gives back post-BOJ gain

*US stock futures surge on Meta, Microsoft earnings

*BOJ holds rates steady, ups inflation forecast keeping rate hike bets alive, but yen weakens

*Copper sees biggest one day decline on record

U.S. futures rose on Thursday, outperforming other markets as traders mulled a raft of economic indicators including central bank rate decisions, inflation data and last-minute trade deal talks ahead of U.S. President Donald Trump's August 1 deadline.

The next data point is U.S. PCE inflation data, the Federal Reserve's preferred gauge, which will be parsed for signs of any effect of Trump's policies on inflation.

The Fed kept rates steady on Wednesday, and chair Jerome Powell said it was necessary to wait for more data before its next move, drawing further criticism from Trump on Thursday.

U.S. share futures were trading sharply higher ahead of that data on Thursday, boosted by better-than-expected results from Microsoft and Meta Platforms after the bell on Wednesday.

"Meta and Microsoft have delivered the kind of earnings most companies can only dream of,” said Dan Coatsworth, investment analyst at AJ Bell. "They’ve smashed market forecasts by a country mile and caused investors to scream with joy."

Nasdaq futures were 1.25% higher and S&P 500 futures up 0.9%.

Earnings were also in focus in Europe, where the region's banks rose 0.75% on Thursday after positive results from France's Societe Generale, while defence names rose 2.9% thanks to a surge in Rolls-Royce.

The broad Stoxx 600 benchmark was flat however, weighed down by miners after U.S. September Comex copper futures tumbled 22% to $4.37 a lb. That was the biggest fall on record after Trump said the U.S. would impose a 50% tariff on copper pipes and wiring, though this fell short of the expectation of sweeping restrictions.

Chinese stocks also retreated after official PMI gauges showed weaker than expected economic activity in July. China's blue chip CSI 300 ended 1.8% lower, its biggest single day drop since April 7, and Hong Kong's index closed 1.6% lower.

BOJ FOCUS

Earlier in the day there was lots to digest in Asia where the Bank of Japan held interest rates steady and increased its inflation forecast, casting cautious optimism on Japan's economic prospects.

Japan's shorter-dated bond yields at one point rose to their highest since early April, but walked that back after the BOJ's policy statement led market participants to scale back expectations for any future interest rate hike.

The yen also relinquished early gains and was last weaker on the day at 149.783 per U.S. dollar, its softest since early April, while the Nikkei index closed up just over 1%.

The dollar's gains on the yen were cancelled out by losses on the euro, which rose 0.37% as traders pared back bets on European Central Bank rate cuts, sending short-dated bond yields higher.

Investors in Asia also considered the implications of a trade deal between the U.S. and South Korea as well as whether Trump's initial announcement of a 25% tariff for India should be taken seriously, especially as it was announced in the middle of trade negotiations.

Shares in India recovered earlier losses, with the benchmark Nifty 50 just in positive territory.

The Korean won gained 0.3% after Trump said the U.S. would charge a 15% tariff on imports from South Korea, which would in return invest $350 billion in U.S. projects and purchase $100 billion in U.S. energy products.

The announcement is the latest in a series of trade deals rushed out before Friday's deadline to avert the imposition of Trump's April 2 "Liberation Day" tariff blitz.

Brent crude futures for September, set to expire on Thursday, declined 40 cents to $72.86 a barrel. U.S. West Texas Intermediate crude for September CLc1 fell 33 cents to $69.66.

Both benchmarks chalked up 1% gains on Wednesday.