Asian stocks dropped for a third day, extending a global selloff, as investors awaited a report on China’s manufacturing amid concern the slowdown in the world’s second-largest economy is deepening.
The MSCI Asia Pacific Excluding Japan Index fell 0.4 percent to 402 as of 8:01 a.m. in Hong Kong, as commodity producers led declines after raw-material prices tumbled. Futures on the Nikkei 225 Stock Average slumped 2.6 percent in Singapore, with Japan’s equity market shut for a holiday. A private China factory gauge due Wednesday is projected to show a seventh straight month of contraction.
Australia’s S&P/ASX 200 Index slid 0.5 percent. South Korea’s Kospi index sank 1.1 percent. New Zealand’s S&P/NZX 50 Index lost 0.1 percent. Futures on the Nikkei 225 traded at 17,525 in Singapore, with the underlying benchmark closing last week at 18,070.21. Trading resumes in Tokyo on Thursday.
Futures on Hong Kong’s Hang Seng Index and the FTSE China A50 Index in Singapore lost at least 1 percent.
The Shanghai Composite Index climbed 0.9 percent on Tuesday amid optimism over President Xi Jinping’s state visit to the U.S. The nations are expected to reach agreements on trade, energy, climate, finance, aviation, defense and infrastructure construction during Xi’s Sept. 22-25 visit, Foreign Minister Wang Yi said last week.