Stocks fall as economic malaise spreads to Japan

Stocks fall as economic malaise spreads to Japan

U.S. stocks fell this morning as evidence piled up that the global economic slowdown is dragging on Asia.

Japan’s economy grew in the second quarter at a 1.4 percent annual rate, far slower than analysts had expected. Last week, China released dismal figures on retail sales and exports in July. Traders had hoped Beijing would roll out stimulus measures over the weekend. That did not happen.

Slower growth in Asia is worrisome because the region’s economic strength has offset weakness in the U.S. and Europe during the past several years. Exports from Asia are plunging, a sign that Europe’s economic woes are stifling consumer demand for products made there.

The Dow Jones industrial average fell 19 points to 13,189 in the first half-hour of trading. The Standard & Poor’s 500 index fell two to 1,404. The Nasdaq composite also fell two to 3,019.

Most Asian markets closed lower. European markets were mixed.