Asian markets open lower in early trading after overnight fall on Wall Street

Asian markets lower in early trading

TOKYO — Asian stock markets slumped in early trading Thursday, with the mood turning downbeat following overnight losses on Wall Street.

Japan’s benchmark Nikkei 225 stock average fell 0.8 percent to 11,202.20. South Korea’s Kospi index slipped 0.3 percent to 1,721.35.

Markets in Australia, Taiwan, China and Singapore were also in the red.

In New York overnight, the Dow Jones industrial average lost 72.47, or 0.7 percent, to 10,897.52 after repeated attempts this week to cross the psychological threshold of 11,000, a level it hasn’t seen in 18 months.

Investors dumped U.S. stocks after the Federal Reserve said Wednesday consumer borrowing fell by $11.5 billion in February. Analysts had expected a modest gain of $500 million. The drop, resulting from weakness in credit cards and auto loans, raised concerns that U.S. consumer spending will remain weak.

Along with a slump in the U.S. market, sentiment was sluggish in Tokyo on Thursday after Japanese machinery orders, an indicator of future business investment, unexpectedly fell in February for the second straight month.

Core machinery orders in the world’s second biggest economy declined 5.4 percent from a month earlier to 684.6 billion yen ($7.3 billion), the Cabinet Office said Thursday. The figure excludes often volatile numbers from shipbuilders and electric power companies.

Japanese machinery makers fell as a result, with Komatsu Ltd. down 1.9 percent and Kubota Corp. losing 1.5 percent.

The dollar fellow below the 94-yen level, pressuring exporters. Nissan Motor Co. retreated 0.7 percent even after the automaker announced a three-way alliance with Renault SA and Daimler AG.

In Australia, resource-related issues lost ground. Mining company BHP Billiton Ltd. shed 1.9 percent, while rival Rio Tinto Ltd. fell 1 percent.

Oil prices fell Wednesday on a report showing crude inventories grew more than expected last week. Benchmark crude for May delivery fell 96 cents to settle at $85.88 a barrel on the New York Mercantile Exchange.

In currencies, the dollar edged up to 93.35 yen from 93.25 yen in New York late Wednesday. The euro stood at $1.3330, slightly down from $1.3338.