In This Article:
* MSCI Asia ex-Japan down 0.3 pct
* Dollar index gains as EM fears hit peso, lira
* New U.S. tariffs on China could come as early as Thursday
By Andrew Galbraith
SHANGHAI, Sept 4 (Reuters) - Asian shares fell and the dollar turned higher on Tuesday as the trade dispute between the United States and China threatened to escalate this week, and as emergency austerity measures in Argentina underscored the turbulence gripping emerging markets.
MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.3 percent. Chinese blue-chips also fell 0.3 percent, reversing earlier gains.
Japan's Nikkei slid less than 0.1 percent, while Australian shares were 0.4 percent lower ahead of a central bank policy meeting.
On Monday, European shares ended mostly flat, though a weak British pound helped to lift London's blue-chip FTSE almost 1 percent. U.S. markets were closed for Labor Day.
But U.S. stock market futures edged higher on Tuesday, with S&P500 E-mini futures gaining 0.1 percent to 2905.5.
"The majors are the focus today rather than emerging markets," said Greg McKenna, chief market strategist at Axi Trader in Sydney, noting that weak manufacturing data and the imposition of austerity measures in Argentina had drawn the market's attention on Monday.
"Today it's back to where is the U.S. dollar going, and at the moment the vote in Asia has been it's going to strengthen again," he said.
"It's utterly consistent that the U.S. dollar is strengthening at the same time that U.S. futures are rallying if what we've seen over the last two months, which is money being allocated to the U.S. and away from other regions, continues."
The dollar index, which tracks the greenback against a basket of six major rivals, was 0.1 percent higher at 95.253.
The dollar was up 0.05 percent against the yen to 111.12 , while the euro was down 0.2 percent on the day at $1.1599.
Manufacturing surveys released on Monday showed mounting stress on factories across Europe and Asia as the outlook for global trade dims.
Also on Monday, Argentine President Mauricio Macri announced new taxes on exports and steep cuts to government spending in what he termed "emergency" measures to balance next year's budget.
The Argentine peso closed 3.14 percent weaker on Monday and is expected to face further pressure in coming days.
Turkey's central bank signalled on Monday it would take steps to combat "significant risks" to price stability, comments seen as hinting at interest rate hikes.
The lira, which has lost 40 percent of its value against the U.S. dollar this year, was 0.3 percent weaker at 6.6400 to the dollar.