By Riva Gold 

Global stocks fell Friday, erasing most of the week's gains as disappointing readings on the Chinese and eurozone economies added to recent concerns over world growth.

The Stoxx Europe 600 was down 1.2% in morning trading, following a 2% drop in Japan's Nikkei and a 1.6% fall in Hong Kong's Hang Seng Index. Futures pointed to a 1.1% opening decline for the S&P 500.

The moves came as data Friday showed China's economic downturn deepened last month more than economists expected, raising the challenge for Beijing to halt a slowdown next year while grappling with a trade conflict.

Official figures showed a November slowdown in industrial production amid issues among auto makers and property markets, while growth in retail sales dropped to its lowest level in more than 15 years.

"The data certainly puts a further dent in recent optimism over the outlook for China," analysts at MUFG wrote in a note.

Meanwhile, purchasing managers' surveys showed that French business activity unexpectedly contracted for the first time in 2 1/2 years, according to IHS Markit, while German surveys also missed forecasts, sending the euro down 0.6% to $1.1291.

That came a day after the European Central Bank cut its economic growth forecasts, highlighting the climate of uncertainty around trade tensions, emerging markets and market volatility.

In European trading Friday, assets closely linked to the Chinese and global economy, including auto and parts, technology and mining companies, led declines. Copper futures were down 1.1%, given China is the world's largest consumer of the industrial metal.

Investors were also continuing to parse the latest Brexit updates after British Prime Minister Theresa May ran into fresh trouble in Brussels on Thursday with her efforts to persuade her European Union counterparts to sweeten the Brexit deal.

The British pound was down 0.5% at $1.2584, bringing its declines this week to about 1%.

In Asia, technology, health-care and materials companies led most of the losses on Friday. The Shanghai Composite fell 1.5% while Shenzhen's All Share index fell 2.5%, with Chinese health-care companies tumbling on speculation about potential price cuts.

Australia's S&P ASX 200 fell 1%. The Australian dollar, closely linked to the Chinese economy, was down 0.9% against the U.S. dollar.

Mao Shengyong, a spokesman with China's National Bureau of Statistics, said China's economic growth was nonetheless on track to achieve its annual target in 2018.

World stocks had rebounded earlier this week as The Wall Street Journal reported that China was set to introduce an industrial policy that is friendlier to foreign businesses and President Trump said on Twitter earlier in the week that "productive" trade talks were under way.

"Markets are behaving as if everything depends on U.S.-China trade," said Yogi Dewan, chief executive at Hassium Asset Management.

--Jessica Fleetham contributed to this article.

Write to Riva Gold at riva.gold@wsj.com

(END) Dow Jones Newswires

December 14, 2018 05:36 ET (10:36 GMT)

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