BANGKOK (AP) -- Slower-than-expected economic growth weighed on Japan's stock market Monday. European markets were down in early trading.
The Nikkei 225 index fell after the Cabinet Office reported Japan's economy grew 2.6 percent in the April-June quarter, far short of the 3.6 percent growth that some analysts had expected. The Tokyo benchmark fell 0.7 percent to 13,519.43.
The slower growth could make it more problematic for Prime Minister Shinzo Abe to carry out plans to raise sales tax by 3 percentage points in April to improve public finances. The tax is now 5 percent.
Abe has "already given an official instruction to economic ministers to check and discuss the impact of the consumption tax hikes on the economy, before making a final decision sometime before mid-October," said Kazuhiko Ogata of Credit Agricole CIB in a market commentary.
European stocks fell in early trading. Britain's FTSE 100 shed 0.2 percent to 6,567.52. Germany's DAX declined 0.6 percent to 8,286.24 and France's CAC-40 lost 0.3 percent to 4,064.54.
Wall Street appeared set for losses, with Dow Jones industrial futures down 0.3 percent at 15,323 and S&P 500 futures dipping 0.4 percent to 1,678.90.
A possible upswing in China's economy helped boost stocks in Hong Kong and on mainland China. Data released Friday showed a 9.7 percent rise in China's industrial production for July. Some other indicators such as auto sales also showed improvement.
Analysts said the figures added weight to the argument that the recent soft patch in the world's second-largest economy may have come to an end.
Hong Kong's Hang Seng jumped 2.1 percent to 22,271.28. The Shanghai Composite Index rose 2.4 percent to 2,101.28. The smaller Shenzhen Composite Index rose 1.3 percent to 1,009.13.
South Korea's Kospi advanced 0.2 percent to 1,884.83. Benchmarks in the Philippines and Taiwan rose. New Zealand and Indonesia fell.
Australia's S&P/ASX 200 rose 1.1 percent to 5,108.70. Resource and mining stocks got a big boost from signs of better growth in China, the world's biggest importer of raw materials.
"Our market had limited opportunity to react to the better-than-anticipated industrial production figure released from China on Friday," said Ric Spooner, chief market analyst at CMC Markets in Sydney. "I think we're seeing some delayed reaction to that."
Newcrest Mining, Australia's largest gold miner, surged 7.9 percent. OZ Minerals advanced 5.4 percent. Fortescue Metals leapt 7.5 percent.
Benchmark oil for September delivery was down 8 cents to $105.89 a barrel in electronic trading on the New York Mercantile Exchange. The contract gained $2.57, or 2.5 percent, to close at $105.97 per barrel on the New York Mercantile Exchange.
In currencies, the euro fell to $1.3305 from $1.3357 late Friday. The dollar rose to 96.64 yen from 96.19 yen.
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