Negative close to the trading week in Asia

CNN -- Asian stock markets ended the week in negative territory following the latest disappointing economic reports out of the United States.

China's Shanghai Composite was the big loser in the region, shedding 3.47 percent to close at 4370.29.

Japan's Nikkei Index dropped 1.37 percent to end the trading week at 13500.46. Major exporters, including Canon, led the declines.

Hong Kong's Hang Seng lost 1.35 percent, finishing the day at 23305.04

Seoul's Kospi dropped 1.05 percent to 1686.45, and Australia's S&P/ASX 200 lost .47 percent to finish at 5559.9.

The slides across Asia follow a report out by the Philadelphia Federal Reserve on Thursday, which showed that local manufacturing activity continued to weaken in February, after falling significantly in January. The report also noted that "manufacturers' outlook for the next six months turned noticeably more pessimistic this month."

The latest results from the Conference Board's January index are also stirring fears that the world's largest economy could be heading toward -- if not already in -- a recession. It found that the leading index declined for the fourth straight month in January. The Board also noted that the leading index has fallen 2.0 percent from July 2007 to January 2008, the largest six-month decline in the index since early 2001. E-mail to a friend