West Texas Intermediate retreated from the highest price since October after a Chinese manufacturing index declined to a seven-month low, signaling demand may slow from the world’s second-biggest oil consumer.
Asian stocks fell with commodities and Australia’s dollar weakened as a private index on China’s manufacturing dropped to a seven-month low. South Korea’s won led emerging-market currencies lower and Japanese bonds rallied.
The yen strengthened versus all its 16 major counterparts as investors sought the perceived safety of the Japanese currency after Asian stocks fell following private data that signaled weaker Chinese manufacturing.
Hong Kong stocks dropped, with the benchmark index headed for its biggest drop in two weeks, after a Chinese manufacturing gauge slumped. China Petroleum & Chemical Corp. jumped on a plan to seek private investors.
A Chinese manufacturing index fell to the lowest level in seven months, adding to challenges for Communist Party officials grappling with risks to the financial system from trust defaults and soured loans.