Asian stock markets drop as China growth slows

[April 15, 2013]  SEOUL, South Korea (AP) -- Asian stock markets sank Monday as China's slower-than-expected economic growth and disappointing U.S. retail sales weighed on investor sentiment.

The world's second-largest economy expanded 7.7 percent over a year earlier in the first quarter, slowing from the previous quarter's 7.9 percent and falling short of expectations that growth would accelerate to 8 percent. The report stirred up worries about the strength of China's shaky recovery that has been supported by government spending.

Japan's Nikkei 225 retreated 1.2 percent to 13,321.82, falling for a second straight trading day after a series of gains. The Bank of Japan's aggressive monetary easing to lift borrowing and spending drove Japanese stocks to their highest close in nearly four years last week.

South Korea's Kospi dropped 0.5 percent to 1,914.79 and Hong Kong's Hang Seng fell 1.3 percent to 21,814.94.

Australia's S&P/ASX 200 declined 1.3 percent to 4,946.60 and China's Shanghai Composite Index shed 1 percent to 2,185.45.

The drop in Asian markets also comes after shares in the U.S. and Europe declined on Friday following sluggish U.S. retail sales and mixed earnings reports. The Commerce Department said retail sales fell 0.4 percent in March from the previous month, reinforcing view that the U.S. recovery is losing some steam.

Benchmark oil for May delivery was down $1.71 to $89.58 per barrel in electronic trading on the New York Mercantile Exchange.

The euro fell to $1.3077 from $1.3111 and the dollar fell to 98.17 yen from 98.19 yen.

[Associated Press; By YOUKYUNG LEE]

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