Asian shares failed to follow a strong close on Wall Street with fears about the spread of the Delta variant of the coronavirus weighing on sentiment even as tame US inflation eased fears the Federal Reserve would rush to reduce its economic support. MSCI's broadest index of Asia-Pacific shares outside Japan dropped 0.25 percent in early trading, dragged by a 0.24 percent decline in Chinese bluechips. The Hong Kong benchmark fell 0.2 percent while Australian shares were largely flat and Japan's Nikkei rose 0.35 percent.

Oil prices were steady on Thursday following two days of gains after a call from the United States, the world's top oil consumer, for major producers to boost output reinforced supply concerns as economies ease their coronavirus restrictions. Brent crude futures edged higher by 5 cents to USD 71.49 a barrel by 0216 GMT while US West Texas Intermediate (WTI) crude futures gained by 4 cents to USD 69.29.

The request reflects the White House's willingness to engage major world oil producers for more supply to help industry and consumers, even as it seeks the mantle of global leadership in the fight against climate change and discourages drilling at home.

Bank Julius Baer & Co remains overweight on India and that's unchanged, Mark Matthews told CNBC-TV18. According to him, there is a tectonic shift going on in China in terms of social imbalances and India could benefit from these changes.