Asian markets decline on Japan's economy contraction (AP) (16-02-2009)

HONG KONG (AP) -- Most Asian stock markets declined on Monday, as Japan's economy reportedly contracted by over 3% in the 2008 4^th quarter and Group of Seven finance ministers warned the global slump will drag on through most of the year.

Investors also seemed disappointed after finance chiefs from the Group of Seven developed countries finished their meeting in Rome with pledges to work together to boost growth and unemployment, but stopped short of concrete measures.

Increasingly, investors are unconvinced governments around the world are acting quick enough to solve the credit crisis, plummeting consumer demand and other problems at the heart of the economic slowdown, analysts said.

Japan's Nikkei 225 stock average edged down 22.45 points, or 0.3 percent, to 7,756.95, and Hong Kong's Hang Seng Index dropped 204.62 points, or 1.5 percent, to 13,350.05. South Korea's Kospi lost 1.4 percent to 1,176.23.

Markets in Australia, India and Singapore also declined, while benchmarks in Shanghai and Taiwan gained.

In Japan, exporters were down on data showing the economy sank deeper into recession.

The result represents the steepest drop for Japan since the oil shock of 1974 and outpaced annual pace declines of 3.8 percent in the U.S. and 1.1 percent in the euro zone. A survey of economists by Kyodo news agency had projected an 11.6 percent contraction.

"It's clearly very shocking data," said Clive McDonnell, head of Asia strategy at BNP Paribas Securities in Hong Kong. "The drop is certainly beyond our own quite negative expectations. (Japan's) policy response has not been as effective."

Shares in Toyota Motor Corp. lost 1 percent, while electronics heavyweight Canon Inc. slid 1.8 percent.

Source: AP