China and HK stocks close higher, investors focus on tariff developments

SHANGHAI, March 24 (Reuters) - China stocks closed higher on Monday, led by metals, although gains were capped as investors grew cautious about U.S. President Donald Trump's approaching tariff deadline. Hong Kong shares were also up.

China's blue-chip CSI300 Index .CSI300 ended 0.5% higher, while the Shanghai Composite Index .SSEC added 0.2%. Hong Kong's benchmark Hang Seng .HIS was up 0.9%.

Non-ferrous metals shares .CSISNMIM rose 1.7%, leading onshore gains, after media reported that China plans to add key metals to state reserves.

U.S. President Donald Trump's top trade chief, Jamieson Greer, plans to speak with his Chinese counterpart this week, ahead of the long-threatened April 2 unveiling of reciprocal U.S. tariffs, potentially including new steps against China. Market participants are watching closely for tariff headlines.

Meanwhile, U.S. Republican Senator Steve Daines met Chinese Premier Li Qiang in Beijing with a group of executives from U.S. companies on Sunday, following an annual business summit in the capital attended by CEOs from big foreign firms.

"The ongoing U.S.-China tensions may erode external demand, sap domestic investment, squeeze manufacturers' margins, and dent workers' pay," said Ting Lu, chief China economist at Nomura.

As growth could face much stronger headwinds in the second-half of the year, Lu expects Beijing to be pressured into increasing stimulus measures to stabilise growth, particularly in services consumption.

China's central bank reiterated its stance to cut banks' reserve requirement ratio and interest rates at an "appropriate time" during a quarterly meeting of its monetary policy committee.

Wall Street firm Morgan Stanley MS.N raised its 2025 GDP growth forecast for China by 50 basis points to 4.5%, citing the impact of stimulus measures on local governments and consumption that have started to filter through, "leading to green shoots".

China's property shares .CSI000952 dropped 1.2%.

Hong Kong tech majors .HSTECH reversed losses in the afternoon session, ending 1.7% higher.