Fresh China fears send Asian stocks into the red

Disappointing Chinese manufacturing data has sent Asian equities into reverse and raised further questions over extent of the country's economic slowdown.

The HSBC/Markit flash purchasing managers index dropped to an 11-month low of 47.7 in July, dashing expectations that it would remain at June's 48.2 and remaining firmly in contraction territory. That sent Hong Kong's Hang Seng index down as much as 0.5%, with the Shanghai Composite down 0.9%, though both indices later pared losses. The MSCI World, which had been trading at a two-month high, erased a 0.2% gain to stand down 0.1%. Disappointing Chinese employment data also weighed on investors' hopes for a soft landing in China, and there was little to cheer elsewhere in the region...