Mumbai: Indian equities are likely to be lower due to weak global peers.

Asian shares wobbled in early Thursday trading as Wall Street stocks dropped on early signs that the US-China trade war could hurt corporate earnings, helping to underpin solid demand for safe-haven US Treasuries.

MSCI’s broadest index of Asia-Pacific shares outside Japan was down a touch, while Japan’s benchmark Nikkei fell 1.3% and Australian shares dropped 0.4%.

South Korea’s market 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 stoked concerns that the protracted trade standoff between the United States and China could hurt US corporate earnings.

Earlier in the week, the US 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 Dow Jones Industrial Average fell 0.4%, the S&P 500 lost 0.7% and the Nasdaq Composite dropped 0.5%.

Back home, shares of Yes Bank, Wipro, Mindtree, Allahabad Bank likely to be in focus today.

Yes Bank Ltd will be in focus as it reported a 91% drop in fiscal-first quarter profit on account of higher provisioning and lower other income. The private sector lender posted a net profit of 113.76 crore for the quarter ended 30 June from 1,260.36 crore a year ago.

Shares of Mindtree Ltd, which was acquired by engineering giant Larsen and Toubro Ltd will also be in focus. It reported 41% drop in its quarterly profit because of higher expenses. Net profit fell to 92.7 crore in the quarter ended 30 June from 158.2 crore in the year earlier. Profit plunged 53% from 198.4 crore in the preceding quarter.

The Union cabinet on Wednesday cleared major changes to the bankruptcy law that will enforce a strict 330-day timeline for the insolvency resolution process, including any legal challenges, and uphold secured creditors’ priority right on the sale or liquidation proceeds of bankrupt companies.

Meanwhile, the US treasury yields fell as concerns about the US-China trade war boosted demand for safe haven debt and after data showed weakness in the US 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.

In the foreign exchange market, the dollar nursed light losses on Thursday, weighed down by lower US 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 versus a basket of six major currencies was nearly flat at 97.119 after shedding 0.2% the previous day.

The euro was not much changed at $1.1285 after crawling up 0.1% on Wednesday. The greenback fell 0.3% to 107.660 yen, extending an overnight loss of 0.3%. Sterling 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 US data reinforced expectations for an interest rate cut by the US Federal Reserve later this month, dragging the dollar lower.

Spot gold was 1.2% higher to finish at $1,426.60 per ounce. It last stood $1,427.22 per ounce. Silver 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 US government data showed large builds in refined product stockpiles. Brent crude futures were down 0.1% to $63.62 a barrel, while US West Texas Intermediate (WTI) crude futures fell 0.3% to $56.61 a barrel.

(Reuters contributed to the story)