Asian Stocks Trading Lower

By Elaine Kurtenbach

SHANGHAI, China -- Asian stocks were lower Thursday as investors mulled dismal trade numbers from China and a hefty interest rate cut by South Korea's central bank in a bid to stave off recession.

Chinese exports fell in November for the first time in seven years, Beijing said Wednesday, highlighting weaker global demand and putting additional pressure on authorities to spur growth.

"This signals that China's economic growth is going to slow down noticeably," said Francis Lun, general manager of Fulbright Securities Ltd. in Hong Kong.

Investors also were cashing in on recent gains, he said.

"The market is in a consolidation mood. It needs time to digest the gains," Lun said.

Hong Kong's benchmark Hang Seng index dipped 0.4%, and mainland China's Shanghai Composite index dropped 0.3%. The S&P/ASX 200 index in Australia declined 1.2%.

Japan's Nikkei 225 stock average slipped 0.04% to 8,656.77, partly reflecting renewed fears that the U.S. Senate may not approve a $14 billion bailout for the auto industry passed by the House of Representatives on Wednesday. But shares of Japanese automakers, such as Honda(HMC Quote) and Mazda, were higher.

South Korean stocks gained modestly after the central bank carried out its biggest interest rate cut ever, slashing a key rate by a full percentage point to a record low 3%.

Gains overnight on Wall Street, where the Dow Jones Industrial Average rose 0.8% to 8,761.42, failed to lift regional sentiment. U.S. stock futures were down slightly. Dow futures dipped 3 points to 8,712, while S&P 500 futures were down 3.4 points, or 0.4%.