By Jiaxing Li

HONG KONG, March 3 (Reuters) - Chinese and Hong Kong stocks rebounded on Monday, recouping some of last week's losses after upbeat manufacturing data and expectation this week's key policy meetings in Beijing will bring new stimulus measures.

Gains in stock indexes were however moderate as both China and the U.S. prepared to slap more punitive trade tariffs on each other, even as investors deemed those as mere posturing.

Hong Kong's benchmark Hang Seng Index .HSI rose 1.2% by the midday break, rebounding after Friday's biggest decline in four months. The Hang Seng Tech Index .HSTECH added 0.7%.

China's onshore stocks also edged up, with the blue-chip CSI300 Index .CSI300 adding 0.5% and the Shanghai Composite Index .SSEC climbing 0.3%. Both indexes lost around 2% each on Friday.

Both the official data and a private-sector survey showed China's manufacturing activity expanded at the fastest pace in three months in February as new orders and higher purchase volumes led to a solid rise in production, helping lift some concerns about the country's economic strength.

Markets were also hopeful that U.S. tariffs could be delayed or less severe, after President Donald Trump said he would impose an additional 10% tariff on all Chinese imports on March 4, in addition to the 10% tariff levied since February 4.

In response to these new U.S. import tariffs set to take effect on Tuesday, China is preparing countermeasures, China's state-backed Global Times reported, with American agricultural exports likely to be targeted.

"We think these moves are still tactics to put more bargaining chips on the table before negotiations take place," analysts at Bank of America said in a note.

"This means while we expect another set of retaliation measures from China in the coming days, we don't think it will trigger an immediate escalation of a bilateral trade war."

Elsewhere, investors were also watching out for potential support measures to boost domestic demand at China's "Two Sessions" meetings, which begin on Tuesday.

Chinese investors tend to have low expectations of the parliamentary meetings, with some expressing concerns about the risk of insufficient policy stimulus, Goldman Sachs said in a note, citing recent meetings with clients.

Beijing is expected to maintain its economic growth target at roughly 5% and announce a budget deficit of 4% of GDP.

(Reporting by Jiaxing Li in Hong Kong; Editing by Jacqueline Wong)

((jiaxing.li@tr.com))