** South Korean shares dropped on Tuesday as U.S. President Donald Trump's surprise decision to impose tariffs on Brazil and Argentina rekindled fears that a trade war could be spreading. The Korean won weakened, while the benchmark bond yield rose.
** Trump on Monday announced tariffs on U.S. steel and aluminium imports from the two countries, with sentiment also hit by weak U.S. manufacturing data.
** In addition to U.S.-China trade war, risk appetite waned on signs of trade frictions between the United States and the South American countries, said Lee Young-gon, an analyst at Hana Financial Investment.
** As of 0206 GMT, the Seoul stock market's main KOSPI fell 16.27 points, or 0.78%, to 2,075.50. The index fell as much as 1.2% in early trade, its lowest intraday level since Oct. 21.
** Foreigners were net sellers of 117.1 billion won ($99.29 million) worth of shares on the main board.
** The won was quoted at 1,187.0 per dollar on the onshore settlement platform <KRW=KFTC>, 0.33% lower than its previous close at 1,183.1.
** In offshore trading, the won was quoted at 1,187.1 per U.S. dollar, down 0.2% from the previous day, while in non-deliverable forward trading its one-month contract <KRW1MNDFOR=> was quoted at 1,185.3 per dollar.
** MSCI's broadest index of Asia-Pacific shares outside Japan <.MIAPJ0000PUS> was down 0.61%, after U.S. stocks slid around 1% overnight [MKTS/GLOB]. Japanese stocks <.N225> fell 0.95%.
** The KOSPI has risen 1.64% so far this year, and gained 1.3% in the previous 30 trading sessions.
** Trading volume during the session in the KOSPI index was 173.62 million shares and, of the total traded issues of 900, the number of advancing shares was 159.
** The won has lost 6.0% against the dollar so far this year.
** In money and debt markets, December futures on three-year treasury bonds fell 0.03 points to 110.29, while the 3-month Certificate of Deposit rate was quoted at 1.53% in late afternoon trade.
** The most liquid 3-year Korean treasury bond yield rose by 1.2 basis points to 1.434% in late afternoon trade, while the benchmark 10-year yield rose by 3.2 basis points to 1.714%.
(Reporting by Hayoung Choi; Editing by Sriraj Kalluvila)