Asia stock markets fall on weak US economic data

Published on NewsOK Modified: April 3, 2013 at 10:41 pm •  Published: April 3, 2013
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BANGKOK (AP) — Weak economic reports on hiring and service industry growth in the U.S. sent Asian stock markets lower Thursday.

The Institute for Supply Management said that its index of non-manufacturing activity grew at a slower rate in March, reaching its lowest level in seven months. The index, which covers companies that employ 90 percent of the workforce in the U.S., was driven down by slower hiring and a steep drop in new orders.

A separate report from payroll processor ADP also pointed to slightly weaker hiring in March.

Japan's Nikkei 225 index plunged 1.7 percent to 12,149.17, shedding much of the previous day's gains that were spurred by hopes for aggressive policy action from the Bank of Japan's policy meeting which ends Thursday. It's the central bank's first policy meeting under its new governor Haruhiko Kuroda.

"Unfortunately, the markets' expectations of the new governor are so high that they will be almost impossible to meet, let alone beat," said analysts at Capital Economics in an email commentary.

South Korea's Kospi dropped 1.6 percent to 1,950.47 as bellicose rhetoric between North Korea and the U.S. rattled the local market. Early Thursday, North Korea warned that its military has been cleared to attack the U.S. Washington said it was working to defuse the situation.