GLOBAL MARKETS-Asian stocks slide as US tariffs on EU fan growth worries

* Asian stock markets: https://tmsnrt.rs/2zpUAr4
* U.S. tariffs on EU goods hit already weak sentiment
* Treasury yields show waning confidence in growth
* Oil falls due to worries about oversupply

By Stanley White
TOKYO, Oct 3 (Reuters) - Asian stocks skidded to a one-month
low on Thursday after the United States opened a new front in
its trade dispute with Europe by imposing tariffs, adding to
already-growing market fears about global growth.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS dropped 0.78%. Japan's Nikkei stock index
.N225 fell 2.20%, on course for its biggest daily decline in
six months. Australian shares .AXJO slumped 2.13% to a
five-week low.
U.S. stock futures ESc1 were up 0.25%, but this did
little to bolster sentiment after shares on Wall Street suffered
their sharpest one-day decline in nearly six weeks on Wednesday,
when the three major New York share indexes all lost more than
1.5%. Yields on two-year U.S. Treasury yields fell as weakening
data on manufacturing and the jobs market suggested the trade
war with China has damaged the U.S. economy.
Oil futures extended their decline in Asia as a
bigger-than-expected increase in U.S. crude inventories and
growing evidence of slowing economic growth point to lower
energy demand.
The United States and China have already hiked tariffs on
each other's goods in a year-long trade row that has raised the
risk of recession and caused major central banks to ease
monetary policy.
On Wednesday, President Donald Trump's administration
announced the United States will impose tariffs on $7.5 billion
of goods from the European Union.
Washington will enact 10% tariffs on Airbus AIR.PA planes
and 25% duties on French wine, Scotch and Irish whiskies and
cheese from across the continent as punishment for illegal EU
aircraft subsidies.
EU manufacturers are already facing U.S. tariffs on steel
and aluminium and a threat from Trump to penalise EU cars and
car parts. The tariffs announced Wednesday were approved by the World
Trade Organization but could still cause friction across the
Atlantic.
The chance that Europe will respond in kind will fuel
worries there could be prolonged damage to global growth.
"Tariffs could be a source of tension between the United
States and the EU," said Masayuki Kichikawa, chief macro
strategist at Sumitomo Mitsui Asset Management Co in Tokyo.
"The U.S. economy is finally starting to slow, because of
trade friction and problems in the manufacturing sector," he
said. "People in the markets want to see if this leads to weaker
job growth."
The two-year yield US2YT=RR fell to 1.4680%, approaching a
two-year low of 1.4280%, after a weak U.S. private sector jobs
report depressed boosted expectations that the Federal Reserve
will cut interest rates this month.
Traders see a 74.9% chance the Fed will cut rates by 25
basis points to 1.75%-2.00% in October, up from 39.6% on Monday,
according to CME Group's FedWatch tool. FEDWATCH
Bets on a rate cut could rise further if U.S. non-farm
payrolls due on Friday show weakness in the labour market.
Hong Kong shares .HSI fell 0.6% as anti-government
demonstrators clashed with police into the early hours of
Thursday, venting their anger over a policeman's shooting and
wounding of a teenager. The financial hub has been rocked by months of protests over
China's rule of the former British colony.
U.S. crude CLc1 rose 0.36% to $52.83 a barrel. Brent crude
LCOc1 rose 0.1% $57.75 per barrel. In addition to a slowing
global economy, energy traders are worried about an oversupplied
market and the chance of geopolitical friction in the Middle
East.
Spot gold XAU= , a safe-haven asset that investors often
buy during time of heightened risk, rose 0.1% to $1,500.70 per
ounce, but in the currency market the safe-haven yen JPY=EBS
and Swiss franc CHF=EBS were little changed versus the dollar.

(Editing by Richard Borsuk)