Asian stocks pared declines on Tuesday, with a regional index near a four-month low. Copper climbed 0.6 percent as a preliminary gauge of Chinese manufacturing unexpectedly rose. The price of insuring Asian bonds against default increased with precious metals.
The MSCI Asia Pacific excluding Japan Index was little changed by 11:29 a.m. in Hong Kong, trimming a drop of as much as 0.3 percent. Australian bonds rallied while the local dollar added as much as 0.3 percent from a seven-month low. Standard & Poor’s 500 Index futures were little changed after the U.S. gauge slid 0.8 percent. Palladium added 0.6 percent.
The so-called flash purchasing managers index rose to 50.5 from a reading of 50.2 in August, 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.
The Hang Seng Index, which has advanced on just four out of 15 trading days this month through yesterday, swung between gains and losses. The Hang Seng China Enterprises Index of mainland companies listed in Hong Kong added 0.1 percent after closing at a two-month low yesterday. The Shanghai Composite Index advanced 0.5 percent.