Hong Kong Shares Mark Biggest Daily Drop in Six Days Amid US-China Tensions

Earlier, the Hong Kong government pledged record spending to mitigate the economic disruption from the coronavirus.

Hong Kong shares saw the biggest daily drop in six weeks on Monday amid signs of escalation in US-China tensions and on investors' expectations of the release of data on the city's economic growth. 

The Hang Seng Index fell 4.2% to end at 23,613.80, which is the biggest percentage fall since 23 March. 

The Hang Seng China Enterprises index showed a 4.4% fall.

After the stock market closed, the Hong Kong government unveiled its GDP estimates for the first quarter, pledging record budget spending to deal with the economic consequences of the coronavirus pandemic. 

U.S. President Donald Trump looks at National Institute of Allergy and Infectious Diseases Director Dr. Anthony Fauci as Fauci answers a question during the daily coronavirus task force briefing at the White House in Washington, U.S., April 17, 2020

© REUTERS / Leah Millis

A drop on the stock market comes amid signs of escalation of US-China tensions following statements made by President Donald Trump and members of his administration about 'significant evidence' of the COVID-19 infection having been released from a laboratory in Wuhan.

The US has also suspended its funding of the World Health Organisation, accusing it of helping China to cover-up the scale of the coronavirus outbreak. 

Both Beijing and the international health watchdog have strongly denied the US allegations.