* Asian shares hampered by worries over Sino-U.S. trade war
* Emerging market currencies seen fragile despite latest rebound
* Indonesian rupiah hits lowest since Asian financial crisis
* Swiss franc supported, Aussie at 20-month low
* European shares seen mostly lower
By Hideyuki Sano
TOKYO, Sept 3 (Reuters) - Asian stocks dropped for the third consecutive session on Monday, hit by worries over further escalation of the U.S-China trade war and unstable emerging market currencies.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.7 percent while Japan's Nikkei .N225 shed 0.6 percent though trade could be subdued due to a U.S. market holiday on Monday.
Most European shares are expected to fall with futures in Germany's DAX .GDAXI FDXc1 and France's CAC .FCHI FCEc1 falling about 0.2 percent. Britain's FTSE futures .FTSE FFIc1 bucked the trend to rise 0.15 percent.
"It looks almost certain that (U.S. President Donald) Trump will impose 25 percent tariffs on $200 billion worth of imports from China," said Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley (NYSE:MS) Securities.
Trump said last week he was ready to implement the new tariffs as soon as a public comment period on the plan ends on Thursday, which would be a major escalation given the United States has already applied tariffs on $50 billion of exports from China. shares .SSEC , which fell 5.3 percent last month on trade war worries, dropped 0.9 percent to 2,700, edging back at the 2 1/2-year low of 2,653 set two weeks ago.
"The markets tend to think ahead. After the tariffs on $200 billion of Chinese exports, they will worry what can come next. Unless the trade war anxiety is dispelled, you cannot rule out the possibility of shares falling further," said Shenshen Wan, strategist at Tokai Tokyo Research.
On the other hand, U.S. stocks - especially technology shares - have fared better, thanks in part to the strength of current economic data and corporate profits.
The Nasdaq index .IXIC rose 5.7 percent last month, with Apple AAPL.O gaining almost 20 percent, the biggest percentage gains since April 2009.
Major economic U.S. data due this week, such as a manufacturing survey on Tuesday and an employment report on Friday, is also expected to show solid conditions, possibly underpinning Wall Street shares - at least for now.
"U.S. shares and only a handful of countries are likely to continue to attract global funds," said Mitsubishi's Fujito.
Trade war worries have lifted the safe-haven Swiss franc, which hit a four-month high of 0.9654 franc to the dollar CHF= and one-year high of 1.1240 per euro EURCHF= on Friday. It last stood at 0.9699 and 1.1250.
In contrast, the Australian dollar AUD=D3 , sometimes used as a proxy for bets on China, hit a 20-month low of $0.71655.
Among the G3 currencies, the euro, which is generally positively correlated to risk sentiment, tends to ease on trade worries while the yen tends to gain but the two currencies' reactions have been more qualified.
Both currencies have been pinned in a narrow range, with the euro trading little changed at $1.1600 EUR= . The yen changed hands at 111.12 per dollar JPY= , also flat.
Investors remained wary of emerging market currencies after sharp sell-offs in the Argentine's peso and the Turkish lira last month on worries over their economic management, big current account deficits and inflation.
That spilled over to a few other emerging countries that share some of those traits, albeit to a lesser degree.
The Indonesian rupiah IDR=ID fell to 14,777 to the dollar, its lowest levels since the country's economic crisis two decades ago.
The Turkish lira fell about 2 percent in early trade to 6.6900 per dollar TRYTOM=D3 in early Monday trade, down about 1 percent.
Oil prices dipped on Monday thanks to rising supply from OPEC and the United States, although expectations of falling Iranian output once U.S. sanctions take effect in November provided some support.
Benchmark Brent crude oil LCOc1 fell 0.4 percent to $77.35 per barrel, slipping further from Thursday's seven-week high of $78.03 per barrel.
U.S. crude futures CLc1 fetched $69.82 per barrel, down 0.3 percent and off $70.50 marked on Thursday, their highest level since July 20.
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http://reut.rs/2sSBRiD Share market divergence in August
https://reut.rs/2Nc9HvN
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