U.S. jobless claims posted their biggest drop in 20 months last week, first-quarter economic growth was revised higher and inflation below forecast. The Federal Reserve's favoured PCE inflation gauge for May is due for release later. The constellation of resilient growth, a tight labour market, buoyant consumer confidence and a rebounding housing market are pushing back recession fears despite sharply rising interest rates that the Fed is signalling could rise twice more. The offshore yuan hit its weakest since Nov. 4 as pressure for lower domestic interest rates builds - in contrast to the U.S. direction of travel. Events to watch for later on Friday:* U.S. May personal income, spending and PCE inflation gauge.

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