HONG KONG Most global stock markets extended their slump Monday as last year's rally showed more signs of petering out. A number of Asian markets were lower amid widespread selling and European shares slipped modestly in early trade, adding to a string of losses the last two weeks. The euro recovered after tumbling to its lowest point against the dollar in nearly seven months, while oil prices lingered below $73 a barrel. Many investors found little comfort in U.S. figures released Friday that showed the world's largest economy grew at an annualized rate of 5.7 percent last quarter. While beating forecasts, the strong growth was spurred by the relatively short-term demand created by companies restocking their inventories and raised doubts about the sustainability of America's turnaround once government stimulus measures begin to wane. "There's no doubt that kind of growth will not last," said Jan Friederich, a senior economist for the Economist Intelligence Unit in Hong Kong. "Markets are factoring in a relatively robust and sustained recovery and any signs that may be overly optimistic will have huge implications," he said. "It's very likely there will be a lot of disappointment later this year." Investors were treading cautiously ahead of this week's slew of economic reports -- on everything from U.S. manufacturing sentiment to German factory output -- to help determine whether the global rebound can keep pace. The most closely watched will be the monthly U.S. employment figures due Friday. Central bank decisions in Europe and Australia will also be in focus. As trading began in Europe, Britain's market fell 0.1 percent, Germany's DAX was off 0.3 percent and France's CAC-40 pulled back 0.6 percent. Wall Street futures suggested U.S. markets would open higher on Monday. S&P futures were up 3.1 points, or 0.3 percent, at 1,073.50. Earlier in Asia, the Nikkei 225 stock average fluctuated before closing up 6.98, or 0.1 percent, at 10,205.02. In China, news that manufacturing activity was still strong in January was taken as more evidence the government will maintain its efforts to keep a lid on growth and inflation. Shanghai's key index led Asia's slide, falling 47.93, or 1.6 percent, to 2,941.36. Markets in Australia, Singapore and Taiwan also lost ground. Elsewhere, South Korea's Kospi rose 4.46, or 0.3 percent, to 1,606.89, helped by news the country's exports surged in January, posting their biggest gain in more two than decades, thanks to strengthening overseas demand and a weaker local currency. Hong Kong's Hang Seng index rebounded from its early fall to finish higher by 0.6 percent to 20,243.75. Among stocks, Japanese car companies took another beating as Toyota and Honda, both struggling with recalls, lost 1.2 percent and 2.5 percent in Tokyo, respectively. Amid their rivals' misfortunes, South Korean automakers bucked the region's broader selling: Hyundai Motor climbed 2.7 percent and Kia Motors was up 5.6 percent. In the U.S. Friday, Wall Street was unable to hold onto its gains as worries about future economic growth and company profits weighed on investors. The Dow fell 53.13, or 0.5 percent, to 10,067.33. The Dow is now down 658.10, or 6.1 percent, since reaching its 15-month high of 10,725.43 on Jan. 19. The S&P 500 index fell 10.66, or 1 percent, to 1,073.87, while the Nasdaq composite index fell 31.65, or 1.5 percent, to 2,147.35, lagging the other measures after Microsoft Corp.'s results disappointment investors. Oil prices made tentative gains in Asian trade, with benchmark crude for March delivery up 11 cents to $72.99. The dollar gained to 90.41 yen from 89.79 yen. The euro traded higher at $1.3905 from $1.3861.

Source