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SINGAPORE (AP) — Asian stock markets were mostly lower Tuesday amid concerns Chinese economic growth could slow more than expected this year.Trading volume was low because Japan’s markets were closed for a national holiday.
Hong Kong’s Hang Seng index fell 0.9 per cent to 20,921.44 and South Korea’s Kospi dropped 0.4 per cent to 2,039.66. Australia’s S&P ASX/200 shed 0.4 per cent and China’s Shanghai Composite Index was down 0.8 per cent at 2,390.45.
Stocks in Asia leapt higher in the first two months of the year as an improving U.S. economy bolstered investor confidence. But China’s announcement earlier this month that it had lowered its economic growth target to 7.5 per cent from 8 per cent has spooked investors.
In another sign of cooling growth in the world’s No. 2 economy, new home prices dropped in 45 Chinese cities in February as the government implemented measures to cool property speculation.
The rising cost of crude is also a threat to the global economic outlook as it could spark inflation and hurt consumer spending. On Tuesday, China raised the price of retail gasoline for the second time in two months.
“The worries over lower growth and inflation risks with oil prices moving up have led to this pause,” said Lorraine Tan, director of Asian equities research for Standard & Poor’s in Singapore. “What we’re seeing now is a needed breather because stocks have run up a fair bit.”
The Dow Jones industrial average rose less than 0.1 per cent to 13,239.13 on Monday while the Standard & Poor’s 500 rose 0.4 per cent to 1,409.75, its highest close since May 20, 2008.
Benchmark oil for May delivery was down 52 cents to $107.57 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose $1.03 to settle at $108.09 per barrel on Monday.
In currency trading, the euro was steady at $1.3228 while the dollar was little changed at to 83.40 yen.