Asian markets fall on dim growth outlook

HONG KONG: Asian shares slipped Friday after a recent rally as investors weighed the prospect of new stimulus measures from the US and China, the world's two biggest economies, to revive faltering growth.

Tokyo dipped 1.10 percent by the break, following declines overnight on Wall Street and in Europe, while Hong Kong slipped 1.11 percent. Seoul fell 1.00 percent, Shanghai was down 0.54 percent and Sydney was 0.81 percent lower.

Poor industry-related data from China and the eurozone released Thursday increased concerns about the slowdown in the global economy.

China's manufacturing activity fell to a nine-month low in August as firms struggled with global woes, providing further impetus for Beijing to beef up economic stimulus efforts, British banking giant HSBC said Thursday.

Preliminary figures from HSBC's closely watched purchasing managers' index (PMI), which gauges nationwide manufacturing activity, hit 47.8 this month, the lowest since November.

Private business across the eurozone also showed a seventh consecutive monthly decline in August, according to a key purchasing managers' index, with analysts warning that the single currency area was at a pivotal point if it is to escape a prolonged recession.

The release of minutes on Wednesday from the Federal Reserve's latest policy meeting showing US central bankers worried about slowing growth drove US stocks down, giving them their worst day this month.

The Dow Jones Industrial Average finished down 115.30 points (0.88 percent) at 13,057.46.

The broader S&P 500 index lost 11.41 points (0.81 percent) to 1,402.08, while the tech-rich Nasdaq shed 20.27 (0.66 percent) to 3,053.40.

Markets are now looking ahead to Fed Chairman Ben Bernanke's speech next week as traders hoped that the United States will unleash more stimulus measures.