GLOBAL MARKETS-Stocks wobble, bond yields fall on earnings woes, trade worries

* All Wall St indexes down: Dow 0.4%, S&P500 0.7%, Nasdaq
0.5%
* CSX tumbles on weak results, Netflix sinks in after-hour
trading
* Treasury yields slump; 10yr, 30yr shed over 7 bps each
overnight
* Precious metals in demand: gold gains over 1%, silver up
2.5%
* Asian stock markets: https://tmsnrt.rs/2zpUAr4

By Tomo Uetake
TOKYO, July 18 (Reuters) - Asian shares wobbled in early
Thursday trading as Wall Street stocks dropped on early signs
that the U.S.-China trade war could hurt corporate earnings,
helping to underpin solid demand for safe-haven U.S. Treasuries.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS was down a touch, while Japan's benchmark Nikkei
.N225 fell 1.3% and Australian shares .AXJO dropped 0.4%.
South Korea's market .KS11 was off 0.4%. Moments earlier,
the Bank of Korea unexpectedly cut its policy interest rate for
the first time in three years, as uncertainties from a trade
dispute with Japan added to anxiety about the economy's outlook.
On Wall Street, all three major indexes fell on Wednesday as
weak results from trade-related CSX Corp CSX.O stoked concerns
that the protracted trade standoff between the United States and
China could hurt U.S. corporate earnings. Earlier in the week, U.S. President Donald Trump kept up the
pressure on Beijing with a threat to put tariffs on another $325
billion of Chinese goods, amid market nervousness over when
face-to-face talks will resume. The Wall Street Journal reported that progress toward a
U.S.-China trade deal has stalled while the Trump administration
determines how to address Beijing's demands that it ease
restrictions on Huawei Technologies.
The Dow Jones Industrial Average .DJI fell 0.4%, the S&P
500 .SPX lost 0.7% and the Nasdaq Composite .IXIC dropped
0.5%. .N
Netflix Inc NFLX.O shares tumbled in aftermarket trade
after the world's dominant subscription video service lost U.S.
streaming customers for the first time in eight years and missed
targets for new subscribers overseas, raising worries in an
already nervous the market. "As we enter the third quarter, we are in a finely balanced
position epitomised by an overly pessimistic bond market on the
one hand, and an optimistic equity market on the other. We think
we are somewhere in between those views," said Paras Anand, head
of asset management for Asia Pacific at Fidelity International.
Indeed, Treasury yields fell as concerns about the
U.S.-China trade war boosted demand for safe haven debt and
after data showed weakness in the U.S. housing market.
Yields on benchmark 10-year and 30-year bonds climbed more
than seven basis points each, to 2.06% and 2.57%, respectively.
U.S. homebuilding fell for a second straight month in June
and permits dropped to a two-year low, suggesting the housing
market continued to struggle despite declining mortgage rates.
In the foreign exchange market, the dollar nursed light
losses on Thursday, weighed down by lower U.S. yields and a
rebound by the pound from 27-month lows.
The International Monetary Fund (IMF) on Wednesday said the
dollar was overvalued by 6% to 12%, based on near-term economic
fundamentals. The dollar index .DXY versus a basket of six major
currencies was nearly flat at 97.119 after shedding 0.2% the
previous day.
The euro EUR= was not much changed at $1.1285 after
crawling up 0.1% on Wednesday. The greenback fell 0.3% to
107.660 yen JPY= , extending an overnight loss of 0.3%.
Sterling GBP=D4 was steady at $1.2433. It had stumbled to
$1.2382 overnight, its lowest level since April 2017 on concerns
of a no-deal Brexit.
Precious metals were in demand. Gold prices rose more than
1% on Wednesday as weaker-than-expected U.S. data reinforced
expectations for an interest rate cut by the U.S. Federal
Reserve later this month, dragging the dollar lower. GOL
Spot gold XAU= was 1.2% higher to finish at $1,426.60 per
ounce. It last stood $1,427.22 per ounce.
Silver XAG= soared about 2.5% on Wednesday to hit a more
than four-month high of $15.96, extending gains for a fourth
straight session. The metal was last quoted at $16.06.
Oil futures fell on Thursday, pushing losses for a fourth
straight session after U.S. government data showed large builds
in refined product stockpiles. O/R
Brent crude futures LCOc1 were down 0.1% to $63.62 a
barrel, while U.S West Texas Intermediate (WTI) crude futures
CLc1 fell 0.3% to $56.61 a barrel.