Asian Stocks Plunge on U.S. Manufacturing, Extending Rout

Asian stocks fell, with the regional benchmark index dropping the most in almost eight months, after data showing weaker-than-expected growth in U.S. manufacturing helped extend a rout that wiped about $1.9 trillion from the value of global equities last month.

Toyota Motor Corp. (7203), the world’s biggest carmaker that gets about a third of sales in North America, sank 4.4 percent after the yen strengthened against the dollar and its U.S. sales fell more than forecast. Japan’s Nikkei 225 Stock Average (NKY) slumped 2.6 percent, extending this year’s decline to 13 percent. Newcrest Mining Ltd. rose 3.8 percent as a climb in the gold price boosted precious metal producers.

The MSCI Asia Pacific Index lost 2.2 percent to 131 at 10 a.m. in Hong Kong, heading for the lowest close since Sept. 2. All 10 industry groups on the gauge declined. The measure dropped 4.6 percent in January for its worst start to a year since 2009 as economic data from China missed estimates and emerging-market currencies slumped.

(Source: bloomberg)