FROM MORRISON SECURITIES PTY. LTD:

U.S. STOCK MARKETS

U.S. stocks fell sharply Friday, capping this year's biggest weekly declines, after disappointing economic data from China and rising borrowing costs in Spain damped sentiment. The Dow Jones Industrial Average declined 136.99 points, or 1.1%, to 12849.59, while the S&P 500 lost 17.31 points, or 1.3%, to 1370.26.

The Nasdaq Composite shed 44.22 points, or 1.5%, to 3011.33. The Dow industrials tumbled 1.61% during the week, while the S&P 500 lost 1.99% and the technology-heavy Nasdaq shed 2.25%. Stocks opened lower after data showed China's economy expanded at its slowest pace in three years last quarter and as rising bond yields in Spain intensified investors' concerns about Europe's sovereign-debt issues.

Better-than-expected earnings from Google, J.P. Morgan Chase and Wells Fargo couldn't offset those worries. Losses accelerated late in the session and indexes ended Friday near session lows.

The S&P 500 has fallen 3.4% since April 2, when the index closed at a nearly four-year high. Financial-sector stocks led the market lower, and Bank of America, down 5.3%, was the Dow's biggest percentage decliner. J.P. Morgan fell 3.6% after posting first-quarter results that exceeded expectations but showed a 3.1% decline in net income.

The bank raised its dividend and unveiled a $15 billion stock buyback. Wells Fargo declined 3.5% after announcing its first-quarter profit rose 13% on better-than-expected revenue growth that was bolstered by its mortgage-banking arm. Technology stocks, including Hewlett-Packard, down 2.1%, also slumped.

Google declined 4.1% after the Internet-search company reported first-quarter earnings and revenue that beat expectations late Thursday, though the average price it charged for each ad click was lower than expectations. The company also said it would create a new class of nonvoting stock that will be distributed to current shareholders as a dividend, effectively a two-for-one stock split.

EUROPEAN STOCK MARKETS

Spanish stocks plunged to a three-year low Friday, leading European stock markets lower, as the country's banks sharply increased their borrowing from the European Central Bank.

A disappointing report on Chinese growth also undercut the buying appetite of investors, as did a surprise decline in a U.S. consumer-sentiment gauge.

The Stoxx Europe 600 index fell 1.5%, bringing losses for the week to 2.2%. Spain's benchmark IBEX 35 tumbled 3.6% to 7250.60, a level not seen since March 2009, after data on ECB borrowings underscored the sector's dependence on central-bank liquidity. The losses brought the index's slide for the week to 5.4%.

The Bank of Spain said the country's banks nearly doubled their borrowing in March from the ECB to EUR316.3 billion compared with February. The country's 10-year yield climbed 0.17 percentage point to 5.99%.

Analysts have feared that a breach above 6% could accelerate a move to 7%, a level they say the country can't afford to borrow over the longer term.

Investors also dumped bonds in Italy, pushing 10-year yields there up 0.21 percentage point to 5.52%. Bank shares in both Spain and Italy tumbled.

Santander slid 3%, Bankinter lost 5.9% and BBVA shed 3.1%, all in Madrid. In Milan, Banca Popolare di Milano slumped 8.2% and UniCredit fell 6%.

Worries were accentuated by a calendar published by Moody's Investors Service for the conclusion of its review of European banks. The expected timetable kicks off with the review of Italian banks in the coming week and Spanish banks the week starting April 23. Banks also fell elsewhere in the region.

Societe Generale declined 5.8%, Credit Agricole lost 5.1% and BNP Paribas shed 5.2%, all in Paris. Commerzbank declined 4.3% and Deutsche Bank gave up 3.2%, both in Frankfurt. In the U.K., Barclays fell 3.8%, Royal Bank of Scotland Group lost 3.5% and Lloyds Banking Group declined 3.6%.

Among major national benchmarks, Italy's FTSE MIB index dropped 3.4% to 14359.50, the French CAC 40 index fell 2.5% to 3189.09 and the German DAX 30 index dropped 2.4% to 6,583.90. The FTSE 100 index shed 1% to 5651.79.

ASIA-PACIFIC STOCK MARKETS

Asian stock markets ended higher Friday after data showing China's economy cooled more than expected in the first quarter strengthened expectations that Beijing could ease its monetary policies further.

Hong Kong's Hang Seng Index climbed 1.8%, Japan's Nikkei Stock Average added 1.2%, and South Korea's Kospi gained 1.1%. China's Shanghai Composite edged up 0.4% and Singapore's Straits Times Index gained 0.3%.

China's economic growth slowed by more-than-expected to 8.1% in the first quarter from the year-earlier period. North Korea's rocket launch Friday morning fizzled out after it reportedly broke apart soon after takeoff. South Korean shares rebounded from previous session weakness with firms in the key shipping sector driving gains.

Daewoo Shipbuilding & Marine Engineering surged 5.9% and Samsung Engineering advanced 5.5%. In Hong Kong, financial and property sector firms rallied.

Agricultural Bank of China jumped 6% and Ping An Insurance Group climbed 4.3%. China Overseas Land & Investment added 2.4% and China Resources Land rose 5.5%. Shares in shipping giant China Cosco Holdings fell 0.2% after reports the shipping firm could seek up to CNY10 billion from the Ministry of Finance after record losses in 2011.

In Tokyo, index heavyweight Fast Retailing jumped 8.6% after the firm revised up its full-year earnings outlook and reported a rise in interim profits late Thursday. Major Japanese exporters making ground included Canon, rising 1.3% and Casio Computer, up 2.4%. They were supported by the dollar's strength against the yen during Asian trading.

COMMODITIES

Base metals closed lower on the London Metal Exchange Friday as weaker-than-expected Chinese gross domestic product data for the first quarter of 2012 and a stronger dollar weighed on sentiment.

At the close, LME three-month copper was 2.7% lower at $7,990 a metric ton. But, despite Friday's disappointing figures, the outlook for industrial metals isn't all gloom.

Capital Economics said the GDP data reflect little about the prospects for China's commodity demand for the rest of the year and into 2013. Crude oil futures declined Friday along with U.S. stock markets after disappointing data out of China increased worries about the economy of the world's largest energy consumer.

Light, sweet crude for May delivery settled 81 cents, or 0.8%, lower at $102.83 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange rose 10 cents to $121.81 a barrel.

Gold futures slumped, erasing much of the week's gains, as worries about the health of the global economy and strength in the dollar pushed traders to pare their holdings of the precious metal.

The most actively traded contract, for June delivery, fell $20.40, or 1.2%, to settle at $1,660.20 a troy ounce on the Comex division of the New York Mercantile Exchange. During the week, futures rose 2%.