Asian stock markets mixed as China growth slows

BANGKOK — Asian stocks were mixed Thursday as China reported slower growth, suggesting a waning contribution by the world's No. 2 economy to the global recovery. Oil prices fell to near $82 a barrel as a stronger US currency weighed on crude by making dollar-based commodities more expensive for investors with other currencies. Japan's benchmark Nikkei 225 stock index couldn't hold onto its morning gains, slipping 0.2 percent, or 18.76 points, to 9,362.84. Hong Kong's Hang Seng was down 0.1 percent to 23,539.79 and the Shanghai Composite Index dropped 0.9 percent to 2,977.07. Markets in Singapore and Malaysia were lower as well. Among gainers, South Korea's Kospi advanced 0.1 percent to 1,873.09 and Australia's S&P/ASX 200 added 0.1 percent to 4,629.50. Markets in India, Taiwan and Indonesia also posted gains. Tey Tze Ming, a trader with Saxo Capital Markets in Singapore, said markets were likely to be volatile in the medium term amid doubts about the outlook for economic growth. "The rally of the last five or six months was kind of a nice, straight line. But now, given there is so much uncertainty, we can expect more swings to come — like in the last few days," Ming said. China said Thursday its rapid economic expansion slowed in the July-September quarter as Beijing cooled a credit boom and tried to steer growth to a more sustainable level. The world's second-largest economy grew 9.6 percent over a year earlier. That was down from the previous quarter's 10.3 percent but by far the highest of any major economy. Still, Ming said he thought a 9 percent growth figure was "too low for China" because growth at that rate could lead to higher unemployment — and greater social unrest. China's slowdown was driven in part by a government clampdown on bank lending aimed at cooling surging housing costs and stock speculation. Before a surprise interest rate hike earlier this week, regulators already had tightened controls on mortgage lending and other credit. Japan's Nikkei initially went up after US Treasury Secretary Timothy Geithner was quoted by the Wall Street Journal as saying major currencies were in alignment, suggesting the dollar shouldn't weaken further against the yen. The comments pushed the dollar as high as 81.84 yen in Tokyo from 81.13 yen in New York late Wednesday. In New York Wednesday, the Dow Jones industrial average rallied 129.35 points, or 1.2 percent, to 11,107.97, lifted by a batch of strong earnings results from companies like Delta Air Lines Inc. and Boeing Co. In currencies, the euro fell to $1.3908 from $1.3951 in New York late Wednesday. The dollar gave up some of its gains versus the yen to trade at 81.18 yen. Benchmark oil for December delivery was down 60 cents to $81.94 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose $1.38 to settle at $82.54 on Wednesday. — AP