Hong Kong Stocks Drop In Morning Session

Hong Kong shares fell in Monday's morning session, tracking losses on Wall Street as investors grapple with the fallout of the increasingly bitter US-China trade spat.

The Hang Seng Index was down 0.4 percent, or 93 points, to 26,807 by the break.

Asian markets across the region were also down as investors opted for safe haven assets.

US President Donald Trump's abrupt threat last week to hit Mexico with tariffs over immigration concerns did little to reassure already anxious investors.

He followed up the threats against Mexico with an announcement that Washington would no longer offer preferential trade treatment to India, starting Wednesday, in a bid to pressure New Delhi to increase market access to US goods.

Coming on the back of a months-long trade spat with China, Trump's latest salvos rattled the markets, prompting a flight from equities to safe-haven investments.

That saw the yen strengthen which in turn weighed on Japanese shares, with Tokyo's main index plummeting 1.2 percent.

Shanghai dropped 0.6 percent, Sydney lost 0.9 percent while Singapore edged down 0.2 percent. But Seoul eked out gains of 0.6 percent. (AFP)