(Updates headline)By Andrew GalbraithSHANGHAI, Sept 4 (Reuters) - Asian shares fell in earlytrade on Tuesday, amid growing concerns over escalatinginternational trade disputes and as emergency austerity measuresin Argentina highlighted turbulence in emerging markets.MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.2 percent after European shares endedmostly flat, though a weak British pound helped to lift London'sblue-chip FTSE almost 1 percent.Japan's Nikkei slid 0.3 percent and Australianshares were 0.2 percent lower.
U.S. markets were closed on Monday for Labor Day.
Growing turbulence in Argentina once again focused globalattention on emerging markets.
On Monday, Argentine President Mauricio Macri announced newtaxes on exports and steep cuts to government spending in whathe termed "emergency" measures to balance next year's budget. The Argentine peso closed 3.14 percent weaker onMonday and is expected to face further pressure in coming days.Turkey's central bank signalled on Monday it would takesteps to combat "significant risks" to price stability, commentsseen as hinting at interest rate hikes. The lira , which has lost 40 percent of its valueagainst the U.S. dollar this year, was 0.3 percent weaker at6.6400 to the dollar.Underscoring global uncertainty, manufacturing surveysreleased on Monday showed mounting stress on factories acrossEurope and Asia as the outlook for global trade dims. U.S. President Donald Trump gave fresh impetus to tradeworries at the weekend when he said there was no need to keepCanada in the North American Free Trade Agreement and warnedCongress not to meddle with the trade talks. Trump was also reported to have said he is ready to imposetariffs on an additional $200 billion worth of imports fromChina as soon as a public comment period on the plan ends onThursday. "President Trump's war of words against Canada amidnegotiations of the NAFTA trade agreement raised concerns thathis stance against other countries such as China would remaincombative. This wasn't helped by data showing some weakness inChina's export-focused manufacturing sector," ANZ analysts saidin a note on Tuesday.The yield on benchmark 10-year Treasury notes rose to 2.8585 percent versus its U.S. close of 2.853 percent onFriday.
The two-year yield , which rises with traders'expectations of higher Fed fund rates, touched 2.633 percentcompared with a U.S. close of 2.629 percent last week.
The dollar dropped 0.13 percent against the yen to 110.93 , while the euro was down 0.1 percent on the day at$1.1611.The dollar index , which tracks the greenback againsta basket of six major rivals, was flat at 95.144.U.S. crude ticked up 0.33 percent at $70.03 a barrel.Brent crude fell to $78.06 per barrel.
Gold was slightly higher, with spot gold traded at$1201.19 per ounce. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^MSCI, Nikkei datastream chart ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Andrew Galbraith; Additional reporting by DharaRanasinghe in London; Editing by Eric Meijer)
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