Sentiment suffers with prospect of tariffs, slower global growth, rising inflation and potentially fewer Fed rate cuts, say Nomura analysts.

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 in Hong Kong declined after a high-profile legislative meeting let down some investors who had been hoping for large-scale stimulus to revive domestic demand and combat deflation.

Oil prices extended declines on Monday as the threat of a supply disruption from a US storm eased and after China’s stimulus plan disappointed investors seeking fuel demand growth in the world’s No. 2 oil consumer.