GLOBAL MARKETS-Stocks slip as new U.S.-China tariffs add to growth risks

* U.S. stock futures down 0.4%, Asian shares down
* U.S. tariffs seen hitting U.S. consumers
* Hong Kong protests escalate, hit Hong Kong shares
* Mainland Chinese shares rise
* European shares seen flat

By Hideyuki Sano
TOKYO, Sept 2 (Reuters) - Global stock prices fell on Monday
after the United States and China imposed new tariffs on each
other's goods, reinforcing investors' worries over slowing
global growth, with no clear end in sight for the trade war.
The E-mini futures for U.S. S&P500 ESc1 fell as much as
1.06% in early trade and last stood down 0.39% while U.S.
Treasuries futures prices TYv1 rose a tad.
Volumes remained thin in Asia ahead of a U.S. public holiday
and European shares are expected to open little changed, with
pan-European Euro Stoxx 50 futures STXEc1 almost flat in early
Monday trade.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS dropped 0.24%, led by 0.5% drop in Hong Kong's
Hang Seng .HSI after another weekend of violent
anti-government protests.
Chinese shares, however, bucked the bearish trend, with the
CSI300 index .CSI300 rising 1.1% despite the trade row
escalation. Providing some tailwind to mainland markets was a
pledge by China's State Council to boost support for the
economy. Caixin/Markit Manufacturing Purchasing Managers' Index
(PMI), a private sector survey, on Monday showed factory
activity unexpectedly expanded in August, though gains were
modest and contrasted with official data that pointed to further
contraction. "It's clear that Beijing is willing to support the economy
through fiscal stimulus," said Kenji Hashizume, senior fund
manager at Mitsui Sumitomo DS Asset Management in Hong Kong.
"While I do not expect the Sino-U.S. relations to keep
deteriorating, it won't be solved easily either," he said.
Washington slapped 15% tariffs on a variety of Chinese goods
on Sunday - including footwear, smart watches and flat-panel
televisions - while Beijing imposed new duties on U.S. crude,
the latest escalation in a bruising trade war. Several studies suggest the tariffs will cost U.S.
households up to $1,000 a year, with the latest round hitting a
significant number of U.S. consumer goods.
In retaliation, China started to impose additional tariffs
on some of the U.S. goods on a $75 billion target list. Beijing
did not specify the value of the goods that face higher tariffs
from Sunday.
Although U.S. President Donald Trump has said the two
countries will hold talks in September, there are doubts any
such talks would lead to a breakthrough. "So far Trump appears defiant though on the tariff hikes,
blaming the Fed and American companies for their difficulties in
dealing with the tariffs," said Shane Oliver, chief economist at
AMP in Sydney.
"There is a long way to go though and re-establishing trust
will be difficult after the experience since mid-last year.
Share markets may still have to fall further to pressure Trump
to resolve the issue."
Many market players say the market's reaction was likely
exaggerated by algorithm-driven players' flows in thin trading
conditions at start of Asian trade on Monday.
Liquidity could be even more limited than usual because of a
U.S. market holiday on Monday.
"(The market move) goes to show you how many data mining
algos are involved with equity linked compared to forex-linked.
Was anyone surprised by these tariffs that took effect
yesterday?" said Takeo Kamai, head of execution at CLSA in
Tokyo.
Tension is also running high in Hong Kong, with police and
protesters clashing in some of the most intense violence since
unrest erupted more than three months ago over concerns Beijing
is undermining democratic freedoms in the territory. Thousands of protesters blocked roads and public transport
links to Hong Kong airport and police made several arrests after
demonstrators smashed CCTV cameras and lamps with metal poles
and dismantled station turnstiles.
China, eager to quell the unrest before the 70th anniversary
of the founding of the People's Republic of China on Oct. 1, has
accused foreign powers, particularly the United States and
Britain, of fomenting the unrest.
Oil prices also fell on Monday.
Brent crude LCOc1 futures fell 0.37% to $59.03 a barrel
while U.S. West Texas Intermediate (WTI) crude futures CLc1
were almost flat at $55.15.
In currency markets, the dollar dipped slightly against the
yen to 106.12 yen JPY= .
The euro stood almost flat at $1.09905 EUR= , not far from
two-year low of $1.0963 hit in U.S. trade on Friday.