World markets slip after mixed US economic reports

[March 15, 2010]  HONG KONG (AP) -- Asian stock markets sank Monday after mixed economic reports about the U.S. economy inspired caution among investors. European shares were also lower.

Major Asian bourses were down as much as 1 percent after a lackluster session on Friday. Oil prices dropped below $81 a barrel and the dollar gained against the euro and fell against the yen.

Investors found few reasons to buy after U.S. economic data released Friday painted an uneven picture of recovery in the world's largest economy. Although retail sales were better than expected last month, a weaker report about consumer sentiment provided little hope the economy, driven largely by consumer spending, was on the verge of a quick turnaround.

Investors were also awaiting statements and policy decisions from central banks in the U.S. and Japan expected later this week. Any fresh news about Greece's debt woes could also steer markets higher or lower.

As trading got under way in Europe, markets in Germany and Britain were off by about 0.2 percent, while France's index shed 0.4 percent. U.S. markets were headed for a lower open as stock futures lost ground.

Earlier in Asia, Japan's Nikkei 225 stock average finished little changed at 10,751.98.

Hong Kong's Hang Seng was down 0.6 percent at 21,079.10 and South Korea's benchmark shed 0.8 percent to 1,649.50.

Elsewhere, Shanghai's market fell 1.2 percent after China's yearly policy meeting ended without new measures investors were hoping for to boost domestic consumption, renewable power and other fields.

"The meeting was pretty much about talk rather than substance," said Zhang Kun, an analyst for Guotai Junan Securities in Shanghai.

Markets in Australia and Taiwan also fell; those in India and Singapore were virtually unchanged.

Australian stocks lost 0.7 percent and India's index dropped 0.5 percent.

Oil prices were lower in Asia, with benchmark crude for April delivery slipping under $81 a barrel before recouping some losses to trade at $81.11. That was down 13 cents from Friday, when the contract slipped 87 cents.

In currencies, the dollar was lower at 90.63 yen from 90.65 yen. The euro fell to $1.3738 from $1.3685.

This week, the U.S. Federal Reserve will be in focus when it wraps up its policy meeting Tuesday. As the Fed is widely expected to hold interest rates near zero, its outlook for the U.S. economy and any clues to when rates will raise will bear greater importance.

In Asia, Japan's central bank is also seen keeping interest rates at rock-bottom levels Wednesday, though there's growing speculation it will step up its policies to keep credit and liquidity loose as the world's second-largest economy rebounds.

In Europe, Greece is presenting the first results of its austerity measures to reduce its mountains of debt and whip its budget into stronger shape. The results, to be delivered Monday and Tuesday at a European Union finance ministers meeting, could lead ministers to decide to extend Greece financial aid, according to media reports.

Friday in the U.S., the Dow ended up 12.85, or 0.1 percent, at 10,624.69.

The broader S&P 500 index slipped 0.25, or less than 0.1 percent, to 1,149.99. The Nasdaq composite index fell 0.80, or less than 0.1 percent, to 2,367.66. It stands at an 18-month high.

[Associated Press; By JEREMIAH MARQUEZ]

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