* All Wall St indexes down; CSX tumbles on trade-relatedweakness
* Treasury yields slump; 10yr, 30yr shed over 7 bps eachovernight
* Bank of Korea surprises with earlier-than-expected ratecut
* Precious metals in demand; gold at 2wk high, silver at5mth high
* Asian stock markets: https://tmsnrt.rs/2zpUAr4
* European futures point to lower open
By Tomo Uetake
TOKYO, July 18 (Reuters) - Asian share markets faltered onThursday as Wall Street stocks dropped on early signs that theU.S.-China trade war could hurt corporate earnings, which helpedunderpin solid demand for safe-haven U.S. Treasuries.
MSCI's broadest index of Asia-Pacific shares outside Japanretreated 0.3%, while Tokyo's benchmark Nikkeiskidded 2.0%, its biggest one-day fall in four months.
Chinese shares followed suit, with the benchmark ShanghaiComposite and the blue-chip CSI 300 down 0.8%and 0.7%, respectively, while Hong Kong's Hang Sengdropped 0.6%.
South Korea's market was off 0.4% after the Bank ofKorea unexpectedly cut its policy interest rate for the firsttime in three years, as uncertainties from a trade dispute withJapan added to anxiety about the economy's outlook.
European stocks are also poised for a decisively lower open,with futures for Britain's FTSE falling 0.4%,Germany's DAX down 1.0% and France's CACdown 0.5%.
On Wall Street, all three major indexesfell on Wednesday as weak results from trade-related CSX Corpstoked concerns that the protracted trade standoffbetween the United States and China could hurt U.S. corporateearnings.
Earlier in the week, U.S. President Donald Trump kept uppressure on Beijing with a threat to put tariffs on another $325billion of Chinese goods, amid market nervousness over whenface-to-face talks will resume.
The Wall Street Journal reported that progress toward aU.S.-China trade deal has stalled while the Trump administrationdetermines how to address Beijing's demands that it easerestrictions on Huawei Technologies.
Netflix Inc shares tumbled in after-market tradeafter the world's dominant subscription video service lost U.S.streaming customers for the first time in eight years and missedtargets for new subscribers overseas, raising worries in analready nervous the market.
Treasury yields slid as concerns about the U.S.-China tradewar boosted demand for safe haven debt and after data showedweakness in the U.S. housing market.
Yields on benchmark 10-year and 30-year bonds climbed morethan seven basis points each, to 2.06% and 2.57%, respectively,overnight and were last quoted at 2.04% and 2.56%, in thatorder.
Even as mortgage rates drop, U.S. homebuilding fell for asecond straight month in June and permits declined to a two-yearlow in a possible sign of more trouble ahead for the housingmarket.
In the foreign exchange market, the dollar slipped onThursday as broader risk aversion pushed benchmark U.S. yieldsto a nine-day low.
The dollar index versus a basket of six majorcurrencies was down 0.2% at 97.08. The index had climbed to aone-week peak of 97.44 the previous day onstronger-than-expected U.S. retail sales and a slump insterling.
The euro added to modest overnight gains and edged up0.1% to $1.124. The single currency's gains were limited as itwas restrained by expectations of easing from the EuropeanCentral Bank as early as next week.
The dollar was 0.3% lower at 107.62 yen, its weakestlevel since July 3.
The International Monetary Fund (IMF) on Wednesday said thedollar was overvalued by 6% to 12%, based on near-term economicfundamentals.
Sterling was a shade higher at $1.244. It hadstumbled to $1.238, its lowest since April 2017 on Wednesdayamid growing risks of Britain leaving the European Union in ano-deal Brexit.
"Risks of a no-deal Brexit have increased to worryingly highlevels. Investors should be concerned," said Seema Shah,London-based chief strategist at Principal Global Investors.
"In the scenario where a no-deal Brexit becomes a realisticprospect, the continued decline in sterling will be just a dropin the ocean."
Britain's fiscal watchdog is expected to say on Thursday thecountry's economy will fall into a recession next year and thatits economy will be 3% smaller in the event of a "no-deal"Brexit, The Times newspaper reported.
Precious metals were in demand, with gold prices hittingtheir highest in two weeks on Thursday, as weaker-than-expectedU.S. data reinforced expectations for an interest rate cut bythe U.S. Federal Reserve later this month, dragging the dollarlower.
Spot gold gained as much as 0.2% to hit $1,429.10per ounce, its highest level since July 3. Silverclimbed as much as 1.0% to 16.12, its highest level sinceFebruary, extending gains for a fourth straight session.
Oil prices steadied on Thursday after falling in theprevious session when official data showed U.S. stockpiles ofproducts like gasoline rose sharply last week, suggesting weakdemand during the peak driving season.
Brent crude futures were up 0.2% to $63.80 a barrel,while U.S West Texas Intermediate (WTI) crude futuresedged down 0.1% to $56.74 a barrel.(Reporting by Tomo Uetake; Additional reporting by SwatiPandey; Editing by Richard Borsuk & Shri Navaratnam)