(Updated at 2:53 p.m. ET (1853 GMT)

By Chris Prentice and Ankur Banerjee

NEW YORK/LONDON, April 24 (Reuters) -

U.S. and European shares turned lower on Wednesday ahead of

more corporate earnings this week and the yen was mired near

34-year lows, keeping traders wary of intervention from Japan.

An after-hours surge in shares of electric vehicle maker

Tesla, following its promise of new models, and upbeat

earnings from some U.S. companies initially lifted sentiment,

spurring a rally in tech stocks in Asia, where

the sector rose 3.6% and Europe, where it gained 2.5%.

MSCI's gauge of stocks across the globe

rose 0.25 points, or 0.03%, to 758.40.

On Wall Street, the Dow Jones Industrial Average

fell 76.51 points, or 0.20%, to 38,427.18. The S&P 500

lost 9.58 points, or 0.19%, at 5,060.97 and the Nasdaq Composite

lost 26.80 points, or 0.17%, to 15,669.84.

Europe's broad STOXX 600 index closed 0.5% lower

after rising to its highest in over a week. Financial stocks

were a drag.

"This week is getting back to market fundamentals and

earnings. At least temporarily, we are sidestepping geopolitics

which have been impacting markets in the last two weeks," said

Samy Chaar, chief economist at Lombard Odier.

Safe-haven gold lost 0.08% at $2,320.06 an ounce.

U.S. gold futures fell 0.14% to $2,324.50 an ounce.

Still to come in an earnings-packed week are results from

tech giants Meta Platforms ( META ), Alphabet and

Microsoft ( MSFT ).

DATA DIVERGENCE

Purchasing Managers Index surveys on Tuesday showed overall

business activity in the euro zone and in Britain expanded at

their fastest pace in nearly a year, while business activity

cooled in the U.S.

That divergence helped the euro nudge above $1.07

in Asia trade, its highest in more than a week.

"For once, US-eurozone divergence in data has come to the

benefit of euro/dollar," said Francesco Pesole, currency

strategist at ING, in a note.

"(Though) hard data - inflation and employment above all -

has been the real drag on the pair so far, so caution is

warranted when it comes to rallies prompted by activity surveys

like PMIs."

U.S. gross domestic product and March personal consumption

expenditure data due later this week will be crucial for the

dollar and for investors' attempts to gauge the path of U.S.

rates.

Traders expect the Federal Reserve to start easing rates in

September and ending the year with 42 basis points of cuts, down

from previous bets for 150 bps.

"One thing is fore sure: the Fed is not raising rates. I

believe they want to tighten financial conditions by

communicating a further distance is required for cuts, but they

can do those cuts at whatever speed is necessary," said Jamie

Cox, managing partner for Harris Financial Group in Richmond,

Virginia.

INTERVENTION ZONE

The drastic shift in rate expectations has elevated Treasury

yields and lifted the dollar in the past few weeks, with

pressure felt particularly in Asia.

In the latest illustration, Indonesia's central bank

delivered a surprise rate hike on Wednesday, stepping up efforts

to support the rupiah currency.

The Japanese yen weakened 0.28% to 155.25 per dollar

and touched its lowest since 1990 ahead of the Bank of Japan's

two-day policy meeting that concludes on Friday.

A senior official of Japan's ruling party told Reuters they

were not yet in active discussion on what yen levels would be

deemed worthy of market intervention.

The yield on benchmark U.S. 10-year notes

rose 5.4 basis points to 4.652% from 4.598% late on Tuesday.

The 30-year bond yield rose 5.9 basis points

to 4.7817% from 4.723% late on Tuesday.

The 2-year note yield, which typically moves

in step with interest rate expectations, rose 3.2 basis points

to 4.9373%, from 4.905% late on Tuesday.

In commodities, U.S. crude lost 0.56% to $82.89 a

barrel and Brent fell to $88.1 per barrel, down 0.36% on

the day.