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By Luoyan Liu and Andrew Galbraith
SHANGHAI, May 6 (Reuters) – Chinese investors, caught off guard by U.S. President Donald Trump’s tariff threats, dumped stocks and sold the yuan currency on Monday as a fresh deterioration in Sino-U.S. trade tensions roiled Asian financial markets.
The country’s major stock indexes fell the most in more than three years. The blue-chip CSI300 index and the Shanghai Composite Index both tumbled more than 5 percent, posting their steepest single-day drop since February 2016. Around 1,000 mainland firms plummet the maximum allowed 10 percent daily limit.
Hong Kong’s Hang Seng index slumped more than 3 percent.
Trump stunned global markets with a tweet late on Sunday announcing he would hike U.S.