* MSCI Asia ex-Japan -0.45%, Nikkei down 1.1%
* Australian shares on track for worst day in 2 months
* U.S. tariffs on Brazil and Argentina 'effective
immediately'
* Asian stock markets: https://tmsnrt.rs/2zpUAr4
By Andrew Galbraith
SHANGHAI, Dec 3 (Reuters) - Asian shares skidded on Tuesday
after U.S. President Donald Trump stunned markets with tariffs
against Brazil and Argentina, recharging fears about global
trade tensions, while weak U.S. factory data added to the
investor gloom.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS was down 0.45% in early trade, with Australian
shares dropping nearly 2%, on track for their worst day in two
months. Japan's Nikkei .N225 shed 1.1%.
In tweets on Monday, Trump said he would impose tariffs on
steel and aluminium imports from Brazil and Argentina, attacking
what he saw as both countries' "massive devaluation of their
currencies." Contrary to his remarks, both Brazil and Argentina have been
trying to strengthen their respective currencies against the
dollar.
Steven Daghlian, market analyst at CommSec in Sydney, said
while the South American tariffs dominated market worries on
Tuesday, China's response to U.S. supporting for anti-government
protesters in Hong Kong has also chilled sentiment.
"Markets are extremely sensitive to any good or bad news on
the U.S.-China dispute front, but also the U.S. relationship
with other nations as well," he said.
China said on Monday U.S. military ships and aircraft won't
be allowed to visit Hong Kong, and also announced sanctions
against several U.S. non-government organisations for
encouraging protesters to "engage in extremist, violent and
criminal acts." Worsening the mood, data from the Institute for Supply
Management (ISM) showed the U.S. manufacturing sector contracted
for a fourth straight month in November as new orders slid.
That erased the market cheer from upbeat Chinese factory
surveys released over the past few days. Bearish sentiment pushed bond prices higher. The yield on
benchmark 10-year Treasury notes US10YT=RR fell to 1.8172%
from a U.S. close of 1.836% on Monday, and the policy-sensitive
two-year yield US2YT=RR , dipped to 1.606% from its U.S. close
of 1.614%.
In currency markets, the dollar rose 0.06% against the yen
to 109.04 JPY= and the euro was a touch lower at $1.1075.
The dollar index .DXY , which tracks the greenback against
a basket of six major rivals, was at 97.856.
Oil prices continued to rise on expectations that the
Organization of the Petroleum Exporting Countries (OPEC) and its
allies may agree to deepen output cuts at a meeting this week.
U.S. West Texas Intermediate crude CLc1 was up 0.25% to
$56.10 a barrel.
Gold was flat on the spot market XAU= , trading at
$1,462.21 per ounce. GOL/