4:35 PM Hong Kong – Stocks in Shanghai and Hong Kong declined on the worries that inflation may overshoot government target for the second month in a row. China is scheduled to release GDP and inflation data this week. Banks and real estate developers declined and steelmakers gained on earnings expectations.

Stocks in Shanghai and Hong Kong declined after investors feared recent gains may have extended market too far ahead of earnings next week.

China is also scheduled to release first quarter gross domestic product data and consumer prices index on April 15. The measure of inflation increased at 4.9% annual rate in February ahead of government target of 4%.

Economists are estimating inflation in March to reach 5% and annual growth in the first quarter between 8.9% and 9.3%.

Crude oil declined after the International Monetary Fund lowered global economic outlook and cut down the prospect of speedy recovery in Japan.

The IMF lowered global economic growth outlook in the current year to 4.4% and lowered the U.S. economic growth forecast to 2.8% from 3% and for Japan to 1.4% form 1.6%.

The benchmark index in Japan dropped 1.7% after Japan’s safety agency lifted its risk rating at Fukushima to the highest level on the international scale to 7 from 5 at the troubled Fukushima Daiichi nuclear power plant.

The Japan Meteorological Agency said first quake struck Fukushima area with a magnitude of 4 and the second quake of a magnitude of 6.3 struck in the ocean east of Tokyo, swinging buildings in downtown Tokyo and closing Narita airport runways.

The Hang Seng Index declined 1.3% to 23,976.37 and the Hang Seng China Enterprises Index dropped 1.8% to 13,437.53.

The Shanghai Composite Index declined 1.4 to 3,021.27 and The Shenzen Component Index declined 22.82 or 0.2% to 12,902.22.

Stock Movers

Cnooc declined 2.9% to HK$19.86 and PetroChina declined 4.9% to HK$11.74. PetroChina declined 1.1% to 12.05 yuan in Shanghai trading.

Crude oil futures for May delivery declined 2.5% to $109.95 a barrel.

Aluminum Corp of China declined 1.85 to HK$7.60 after the U.S. based Alcoa reported first quarter sales lower than expected.

Jiangxi Copper declined 3% to HK$26.30 and Zhaojin Mining Industry Co declined 0.4% to HK$36.65.

BOC Hong Kong (Holdings) Ltd declined 2.4% to HK$24.70 after chief executive offer of the Hong Kong Monetary Authority said bank credit in the first two months of 2011 increased at 26% after expanding at 29% in the period a year ago.

China Construction Bank declined 0.2% to 5.12 yuan and Poly Real Estate Group dropped 1.6% to 13.84 yuan in Shanghai trading. China Vanke declined 3.6% to 8.82 yuan.

Hebei Iron & Steel Co. soared 10% to 4.55 yuan and Angang Steel added 2.3% to 8.48 yuan on the expectations of a sharp surge in first quarter profits.