Markets Tumble as Tariff Tensions Intensify Ahead of Trump Announcement

China and Hong Kong stocks declined significantly on Monday amid heightened concerns over U.S. President Donald Trump's upcoming tariff policy announcement. Key indices, such as China's blue-chip CSI300, Shanghai Composite, and Hong Kong's Hang Seng Index, saw notable drops, impacting various sectors amidst anticipation of increased tariffs on Chinese goods.

China and Hong Kong's stock markets faced a significant downturn on Monday as investors braced for U.S. President Donald Trump's impending tariff policy reveal. The expected announcement on April 2 has heightened fears of even more tariffs targeting Chinese goods, causing key indices to plummet.

The decline was led by a 0.7% fall in China's blue-chip CSI300 index and a 0.5% fall in the Shanghai Composite index. The consumer staples sector and real estate index fell 1.2% and 2% respectively, while the CSI Banks Index rose marginally by 0.3% due to recapitalization efforts by state-owned banks.

Meanwhile, Hong Kong's Hang Seng Index dropped 1.3% to its lowest level since early March. The market was particularly impacted by tech stocks, with the Hang Seng Tech Index falling over 2% and major companies like Alibaba and Xiaomi experiencing significant losses. Analysts caution that China's economy faces a 'stress test' amid these developments, as U.S.-China trade tensions exacerbate market volatility.

(With inputs from agencies.)