Local shares sank on Monday on a mixed day for equity markets, amid escalating global trade tensions.

The Hang Seng Index slipped 1.85 percent to 23,783.

Investors are struggling to keep up with US President Donald Trump's trade policy tinkering, while his refusal to rule out a US recession this year further rattled confidence.

The US leader's on-again, off-again tariff threats against China, Canada, Mexico and others have left financial markets in turmoil and consumers unsure what the year might bring.

Traders are also keeping tabs on Beijing as national leaders wrap up the Two Sessions meetings in the capital. (Agencies)