Hang Seng Index slumps on US tariff sell-off

Stocks plunged more than nine percent in Hong Kong on Monday on fears of a trade war.The Hang Seng Index fell by 9.28 percent, or 2,119 points, to 20,730, while the Shanghai Composite Index lost 4.21 percent, or 140 points, to 3,201. Equity markets have been selling off globally since US President Donald Trump imposed sweeping tariffs on April 2. (with additional reporting by AFP)

Financial markets in Hong Kong and across the border dived on Monday as markets around the world crumbled in the face of a widening global trade war and fears it will unleash a deep recession. The Hang Seng index slumped more than 10 percent in morning trade which, if sustained, would make for the benchmark's largest daily fall since the 2008 global financial crisis. Banking stocks collapsed, with Hong Kong-listed shares of HSBC and Standard Chartered tumbling 15 percent.

The CSI300 blue-chip index fell more than 5 percent with selling in nearly every sector. The yuan slipped to its lowest since January and bonds rallied sharply. China, which is now facing US tariffs of over 50 percent, responded in kind on Friday by slapping extra levies on US imports.

Mainland indexes of solar companies and household appliance makers notched losses around 10 percent. The Hang Seng volatility index shot to its highest since October. Shares in online giants Alibaba and Tencent were down more than 8 percent.

(Reuters) _____________________________.