Asian Equities Lower after China PMI

Asian stocks pared declines, with a regional index near a four-month low, and copper climbed as a preliminary gauge of Chinese manufacturing unexpectedly climbed. The price of insuring Asian bonds against default increased.

The MSCI Asia Pacific excluding Japan Index was little changed by 10:19 a.m. in Hong Kong, trimming a drop of as much as 0.3 percent. Copper climbed 0.7 percent after four days of retreat. Australian bonds rallied while the local dollar added as much as 0.3 percent from a seven-month low and the S&P/ASX 200 Index swung to a 0.1 percent gain. Standard & Poor’s 500 Index futures were little changed after the gauge slid 0.8 percent in the U.S.

The so-called flash purchasing managers index rose to 50.5 from a reading of 50.2 in August, HSBC Holdings Plc and Markit Economics said, while economists predicted it would fall to 50, the border between expansion and contraction. About $574 billion was wiped from the value of global equities yesterday after China’s Finance Minister Lou Jiwei damped speculation leaders in Asia’s biggest economy will implement large-scale stimulus. Factory indexes for the U.S. and Europe are also scheduled.

Bloomberg

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