Chinese stocks and the yuan slumped as fears of worsening Sino-American tensions further undermined investor confidence after a slew of disappointing economic developments.

Hong Kong's Hang Seng Index closed 1.45% lower at 20426.93 on Monday. The lack of clarity on Trump's next steps as U.S. president, and the lackluster fiscal plans by China means economic risks could persist,

Chinese stocks fell, reflecting caution before the conclusion of a key legislature meeting that investors hoped would unveil stronger stimulus.