By V. Phani Kumar, MarketWatch HONG KONG (MarketWatch) — Asian markets declined on Monday after China’s inflation accelerated in March and as a weak American employment report dragged on U.S. equity futures, with Japanese stocks also hit as a strengthened yen pressured exporters. Japan’s Nikkei Stock Average JP:100000018 -1.47% fell 1.5% to end lower for a fifth straight trading day. China’s Shanghai Composite CN:000001 -0.67% gave up 0.5% and, South Korea’s Kospi KR:0100 -1.57% lost 1.6% in late trade, while Taiwan’s Taiex XX:Y9999 -1.37% ended 1.4% lower. Stock markets in Hong Kong, Australia, New Zealand, Thailand and Philippines were closed for public holidays. Regional stocks began the week’s trading on a weak note, after data released on Friday showed the U.S. economy created just 120,000 jobs in March, well below market expectations. Although U.S. markets were closed on Friday, index futures dropped sharply after the data, pointing to a likely sharp fall when trading in Wall Street stocks began Monday. Read the U.S. jobs report. The data “is a reminder for the market that the strong pace of recovery in the U.S. labor market cannot be taken for granted,� Barclays strategists wrote in a report. The data “certainly reopen the door for the market to consider further accommodation down the road from the [U.S. Federal Reserve].� Dow Jones Industrial Average DJIA -0.11% futures fell 117 points, or 0.9%, to 12,861 and S&P 500 Index SPX -0.06% futures dropped 14.30 points, or 1%, to $1,375.90 during Asian trading hours. Read story on what to expect from U.S. stocks. Stock losses were spread across several sectors in Tokyo, Seoul and Taipei on Monday following the U.S. data, with Japanese exporters also pressured by the yen’s strength. Data released earlier Monday showed Japan returned to a current account surplus in February, after posting a deficit in January. Toyota Motor Corp. TM +0.31% JP:7203 -2.36% lost 2.4% and Canon Inc. CAJ +0.43% JP:7751 -1.69% dropped 1.7% in Tokyo, with Samsung Electronics Co. SSNLF +25.39% falling 1.1% and LG Electronics Inc. LGEIY 0.00% sliding 3.7% in Seoul. In Taipei, Hon Hai Precision Industry Co. HNHAF 0.00% fell 1.4% and HTC Corp. HTCXF 0.00% slumped 6.8%. Sony Corp. SNE +1.47% JP:6758 +0.61% staged a sharp rebound in Tokyo, erasing early losses to finish 0.6% higher after the Nikkei newspaper reported the company planned to cut 10,000 jobs, about 6% of its total work force, worldwide. Meanwhile, Chinese inflation data also disappointed, with March consumer price index rising 3.6%, compared to February’s print of 3.2%, and beating expectations for a 3.3% increase. Ting Lu, China economist at Bank of America Merrill Lynch, said that while the March CPI data was above market expectations, it was weaker than the average 3.9% rate for the first two months of the year. “But the room for further decline is quite limited. For policy, there will be no big stimulus, but we still see fine-tuned easing to support growth,� said Lu. Banks and property developers declined on mainland bourses, with shares of Bank of China Ltd. CN:601988 -0.33% BACHY +0.50% losing 0.3% and China Citic Bank Corp. CN:601998 -1.87% CHBJF 0.00% falling 1.6%. Among developers, Gemdale Corp. CN:600383 -1.32% dropped 1.6% in Shanghai and China Vanke Co. CVKEY 0.00% fell 1.8% in Shenzhen. The region’s energy producers declined as Nymex crude-oil prices dropped sharply. Inpex Corp. IPXHF +19.13% JP:1605 -2.77% shed 2.8% and Japan Petroleum Exploration Co. JP:1662 -2.70% lost 2.7% in Tokyo, while heavyweight PetroChina Co. CN:601857 -1.03% PTR +0.33% gave up 0.9% in Shanghai afternoon trading. Varahabhotla Phani Kumar is a reporter in MarketWatch's Hong Kong bureau.

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