Europe down, Asian stocks close mixed

NEW YORK, Aug. 16 (UPI) -- European stock prices took a hit in early trading Tuesday on lower-than-expected growth in Germany while Asian stocks mostly ended lower after a good start.

Investors on both the continents were expected to carry forward their previous day's rally, strengthened further by Wall Street's rally for the third straight session.

But Germany's growth story turned the tables, with numbers showing its economy -- so critical to pull the creaking eurozone out of its current morass -- grew an anemic 0.1 percent in the April-June quarter, well below expectations.

That news came as a curtain-raiser for the big meeting between German Chancellor Angela Merkel and French President Nicolas Sarkozy to discuss the European debt crisis that is now eyeing Italy and Spain.

Eurozone's growth also slowed in the latest quarter.

Germany's DAX sank 2.17 percent in early trading after the growth figures were announced, with the other two European heavyweights, London's FTSE 100 and France's CAC 40 turning red.

"This is a serious disappointment," one expert told the BBC, adding the news does not provide positive signs for eurozone GDP.

There have already been rumors France could be next after the United States to lose its top AAA rating.

As for Asia, there were no market-shaking developments Tuesday to justify a lower close.

The only champs to stay standing through the day were Tokyo's Nikkei-225 and South Korea's Kospi indexes.

Nikkei was happy to get out with a 21-point gain or 0.23 percent to stay above the 9,000 level at 9,107 points, while the Kospi, after a day of rest Monday for Liberation Day, checked out with a hefty gain of 87 points or 4.83 points to 1,880.

Hong Kong's Hang Seng Index came on strong with an intra-day high of 20,431, but shed all the gains and then some, to close down 48 points or 0.24 percent to 20, 212 points. Shanghai Composite slipped 19 points or 0.71 percent to 2,608 after hitting a high of 2,636 points.

Exchanges in Australia, Taiwan, Singapore and Indonesia also closed lower, joined by India's 30-stock Sensex and the broader Nifty indexes.