Asia shares shaken by unrest from Hong Kong, Argentine pesocracy By Reuters

By Stanley White

TOKYO (Reuters) – Asian stocks plunged on Tuesday as fears of a drawn US-US trade war, protests in Hong Kong and a crackdown in Argentina's peso currency drove investors to safe havens such as bonds, gold , and the yen.

MSCI's broadest index of equities in Asia and the Pacific off Japan exceeded 1%. Chinese stocks fell 1%, while Hong Kong's main market index fell 1.7% to a seven-month low.

"The protests in Hong Kong are negative for equities, which were already in an adjustment phase because there is talk that trade war will trigger a recession," said Kiyoshi Ishigane, chief fund manager at Mitsubishi UFJ Kokusai Asset Management Co.

Hong Kong Airport, the world's busiest airport, reopened Tuesday after protesters managed to close the day before. The mood remained cautious as the increasingly violent demonstrations have thrown Chinese-controlled territory into its most serious crisis in decades.

The weeks-long protests began in opposition to a bill that allows extradition to China, but has quickly become the biggest challenge to China's authority over the city since it withdrew Hong Kong from the United Kingdom in 1[ads1]997.

Japan's also became tough hit, down a steep 1.2% and on course for its biggest daily decline in a week.

trade, the pan region was unchanged.

US stock futures were 0.23% higher in Asia, but it did little to calm the fragile mood.

Singapore shares plunged 1.1% to reach their lowest since June 6 after the government lowered its financial forecasts for the entire year. The city state is often seen as a watch for global growth because of its importance as an important trade hub.

Sales in regional markets came when Wall Street shares struck on Monday, and the S&P 500 lost 1.23%. [19659002] The sentiment was already weak due to growing signs that the US and China will not quickly resolve their years-long trade war. Markets were hit with further turbulence after protesters managed to shut down Hong Kong airport on Monday.

Traders were also on the outskirts after the market-friendly Argentine president Mauricio Macri suffered a mistreatment in the presidential primaries, increasing the risk of a return to interventionist guidelines.

Benchmark 10-year government bonds were near their lowest in almost three years, gold was pegged near a six-year high, and the yen was within a seven-month high versus dollar whisker in a sign of rising financial market fears already has been exposed to global growth relations.

"Long-term interest rates will continue to fall and stocks will adjust lower, but this is temporary. Larger central banks are cutting interest rates, which will eventually provide financial support," said Ishigane, Mitsubishi UFJ.

Analysts said trading could be curbed as many investors are on holiday for the summer. Still, there was no shortage of gloomy news for investors who wanted to take their breath away from several months of market disruption.

Argentina's peso collapsed on Monday, losing about 15% of its value to $ 52.15 per dollar after crumbling to a time low of 61.99 previously. Voters stunned Macri by giving the opposition a surprisingly larger-than-expected victory in Sunday's primary election.

The Merval stock index () crashed 30% and the decline of between 18-20 cents in Argentina's 10-year benchmark index yielded bonds at around 60 cents a dollar or even lower.

Refinitive data showed Argentine stocks, bonds and the peso had not recorded this type of simultaneous fall since the South American country's economic crisis in 2001 and debt failure.

The gloomy backdrop was enough to push investors into safe havens, and US government bonds fell across the board on Monday as trade concerns and political tensions supported the safe haven.

In Asia, the benchmark 10-year government bonds fell to 1.6403% on Tuesday. On August 7, yields had risen to 1.5950%, the lowest since October 3, 2016.

rose 0.47% to $ 1,518.43 per ounce, near the six-year high.

The Yen last fetched $ 105.41 per dollar, and was within striking distance of 105.03, the strongest since the January 3 flash crash.

Oil prices weakened slightly in Asian trade as expectations that large producers would continue to reduce supplies, worried about weak economic growth.

USA Between West Texas futures fell 0.22% to $ 54.81 per barrel.