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US stocks dip on weak China, Japan data

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US stocks have slipped as weak economic data from China and Japan raised questions about the growth outlook in Asia.

The Dow Jones Industrial Average fell 34.04 (0.21 per cent) to 16,418.68.

The broad-based S&P 500 shed 0.87 (0.05 per cent) to 1,877.17, while the tech-rich Nasdaq Composite Index gave up 1.77 (0.04 per cent) to 4,334.45.

Earlier, Asian and most European markets lost ground after China reported weak inflation data and a $US23.0 billion ($A25.52 billion) trade deficit in February, while analysts had forecast an $US11.9 billion surplus.

“Markets are retreating on the weak Chinese exports data, which is consistent with our view that the China economy is slowing,” said Jack Ablin, chief investment officer at BMO Private Bank.

Meanwhile, Japan said its economy grew more slowly in the fourth quarter, 0.2 per cent, than the previously reported 0.3 per cent.

Michael James, managing director of equity trading at Wedbush Securities, said profit-taking was also a factor following gains since early February.

“Stocks have had a pretty good move,” James said. “Traders were kind of positioned to take profits.”

Bank of America Merrill Lynch downgraded home builders Meritage Homes and KB Home, citing pressure on profit margins. KB Home fell 4.1 per cent, while Meritage shed 3.5 per cent.

Boeing experienced the deepest losses among the blue chips, dipping 1.3 per cent after a Japan Airlines 787 Dreamliner jet made an emergency landing in Honolulu, reportedly due to a possible problem with its hydraulic system.

The news followed a Friday Boeing disclosure that hairline cracks were found in the wings of some of its Dreamliners in production, due to a manufacturing problem.

Chiquita Brands International jumped 10.7 per cent after announcing a merger with Fyffes to create the world’s largest banana company. Chiquita shareholders will own about 50.7 per cent of the new company.

Fuel cell stocks were hot ahead of company earnings reports this week. Fuel Cell Energy, which will release earnings Tuesday, rose 11.3 per cent, while Plug Power, which reports Thursday, jumped 24.7 per cent.

Bond prices were mixed. The yield on the 10-year US Treasury slipped to 2.78 per cent from 2.79 per cent, while the 30-year edged higher to 3.73 per cent from 3.72 per cent. Bond prices and yields move inversely.