HONG KONG, April 17 (Reuters) - Morgan Stanley ( MS ) and HSBC ( HSBC )

are cutting dozens of investment banking jobs in the Asia

Pacific this week, sources with knowledge of the matter said, as

weaker deal activities and sluggish markets in China and Hong

Kong weigh on their business prospects.

Morgan Stanley ( MS ) is cutting at least 50 investment

banking jobs in the region starting this week, three sources

with knowledge of the matter said, affecting around 13% of the

Wall Street bank's Asia investment banking workforce of 400.

Layoffs at the investment banking business unit of HSBC ( HSBC )

, which makes the bulk of its revenues and profits in

Asia, started on Tuesday and is expected to see the departure of

around 30 dealmakers in the region this week, three separate

sources said.

All of the sources declined to be named as they were not

authorised to speak to media.

Morgan Stanley ( MS ) declined to comment on the job cuts. HSBC ( HSBC ) did

not immediately respond to a Reuters query on Wednesday.

The cuts are among the largest to the two banks'

China-focused investment banking teams and follow similar

measures by other banks stung by a decline in deal-making

activities in China amid a slowing economy.

A new round of staff cuts that began in late 2023 on the

Chinese mainland and Hong Kong, key regional investment banking

hubs of western banks, is set to gather pace this year, bankers

and recruiters have said.

In January, Bank of America ( BAC ) laid off around 20

bankers in the region, following a flurry of investment bank

downsizing by UBS, Citigroup ( C/PN ) and other boutique

firms.