Asian Stocks Drop as China Manufacturing Gauge Falls

Asian stocks fell, dragging the regional benchmark index down from an almost one-month high, after a Chinese manufacturing index dropped more than estimated.

Newcrest Mining Ltd., an Australian gold producer, lost 4.8 percent in Sydney as futures on the precious metal slid. Naver Corp. (035420) sank 5.9 percent in Seoul amid concern an expansion at WhatsApp Inc. following its acquisition by Facebook Inc. would curb sales at the South Korean Internet site. China Petroleum & Chemical Corp. surged 6.9 percent in Hong Kong after Asia’s biggest oil refiner said it’s seeking private investors.

The MSCI Asia Pacific Index lost 1 percent to 136.15 as of 10:23 a.m. in Hong Kong, as all 10 industry groups declined. A preliminary reading for a Purchasing Managers’ Index fell to a seven-month low, a report today showed, adding to signs of a factory slowdown that will limit growth. The International Monetary Fund, in a staff report prepared for central bankers and finance ministers from the Group of 20, said yesterday “significant downside risks remain” for the world economy.

(Source: Bloomberg)