Asian stocks fell the most in 10 months and metals sank on disappointing Chinese manufacturing data. The dollar rose against most of its major peers as Federal Reserve Chairman Ben S. Bernanke said the central bank may cut bond purchases once it’s confident of sustained economic gains.
Asian stocks declined, with the regional benchmark index heading for its biggest drop in five weeks, after China’s manufacturing output unexpectedly contracted and amid speculation the Federal Reserve may soon wind back stimulus.
U.S. stocks slid, dragging benchmark indexes to their worst drop in three weeks, and Treasuries and gold tumbled on concern the Federal Reserve will scale back stimulus efforts if the labor market improves.
Norges Bank is sticking to an interest rate outlook that signals the possibility of a cut next month, even after a weaker krone helped boost inflation in Europe’s second-richest nation per capita, Deputy Governor Jan F. Qvigstad said.
Asia’s regional benchmark stock index held near its highest level since June 2008, as the Bank of Japan maintained its plan to expand the monetary base. Sony Corp. surged, while Chinese power producers declined.