(Updates index move) BUENOS AIRES, June 25 (Reuters) - Argentina’s S&P Merval stock index closed down some 2.7% on Friday after MSCI yanked the country’s emerging market status and reclassified it a “standalone” market over continued tough capital controls limiting accessibility for investors. Index provider MSCI said on Thursday it would reclassify the MSCI Argentina Index from Emerging Markets to Standalone Markets status during its November index review, due to the “prolonged severity of capital controls with no resolution.” Indices can funnel billions of dollars of tracking funds into developing economies. A status downgrade can spark forced selling by funds, hitting locally listed companies hard.