By Sandy Hendry and Jonathan Burgos Feb. 1 (Bloomberg) -- Asian stocks and currencies fell as manufacturing surveys added to speculation that Chinese policy makers will rein in record lending growth. Bond risk climbed on concern Greece will need a bailout to repay its debts. The MSCI Asia Pacific Index slumped 0.3 percent to 116.47 as of 4:15 p.m. in Tokyo after the two surveys showed rising export orders and inflation pressures in China. The Shanghai Composite Index slid 1.7 percent. Futures for the Dow Jones Euro Stoxx 50 declined 0.9 percent, while those for the Standard & Poor’s 500 rose 0.2 percent. South Korea’s won lost 0.7 percent, leading declines in developing-nation currencies. The MSCI Emerging Markets Index of shares has fallen more than 10 percent since Jan. 11, as China and India raised reserve requirements for banks to curb lending growth and damp inflation. The dollar traded near a seven-month high against the euro as equity investors pull cash out of Europe at a record pace and central banks slow purchases of the European currency. “Markets may continue to move lower on concerns about further tightening,” said Manpreet Gill, Singapore-based strategist for Asia at Barclays Wealth, which has $223 billion in assets. “Investors should start to nibble, following recent declines, as central banks are tightening because fundamentals are improving.” A purchasing managers’ index released by HSBC Holdings Plc and Markit Economics rose to a record 57.4 from 56.1 in December and the survey showed the biggest gains in prices since July 2008. A similar index from the Federation of Logistics and Purchasing was a seasonally adjusted 55.8, the second fastest pace since 2008. Share Declines Hebei Iron & Steel Co., the listed unit of China’s second- biggest steelmaker, declined 4 percent after central bank Deputy Governor Zhu Min said the government plans to curb industrial overcapacity. Jiangxi Copper Co. and Aluminum Corp. of China Ltd. slid more than 3.6 percent. China Shenhua Energy Co. dropped 3.2 percent and led losses among coal producers after spot prices for the fuel dropped at Qinhuangdao port and earnings slumped. Bank of Communications Ltd., the bank that’s part-owned by HSBC Holdings Plc, dropped 1.4 percent, while China Construction Bank Corp., the country’s second-biggest lender, lost 1.1 percent. “The market is very worried about the outlook for economic recovery,” said Wu Kan, a Shanghai-based fund manager at Dazhong Insurance Co., which manages about $285 million. “More tightening measures are expected.” Toshiba, Honda Toshiba Corp., Japan’s biggest memory-chip maker, fell 6 percent after the company cut its annual sales forecast on Jan. 29 by 5.9 percent, citing the global recession. Honda Motor Co. sank 2.5 percent after saying it’s recalling 646,000 City, Fit and Jazz cars primarily in North America and U.K. because of faulty power windows. Copper in London declined 0.8 percent to $6,690 a metric ton on a strengthening dollar and China’s curbs in bank lending. Nickel slid 0.5 percent to $18,400 a ton. The dollar was at $1.3886 per euro, after earlier touching $1.3853, the strongest level since July 8. Traders have spurned European stocks in favor of shares elsewhere for a record 19 straight weeks, “clearly hurting” the currency by draining a net $13 billion from the market, said Geoffrey Yu, a UBS AG analyst. European Union Monetary Affairs Commissioner Joaquin Almunia said on Jan. 29 fiscal imbalances within euro-zone economies have been discussed “every month.” Debt Concerns “Sovereign debt worries in Greece, Portugal and Spain continue to hang over the euro,” said Mike Jones, a currency strategist at Bank of New Zealand Ltd. in Wellington. “As long as these worries continue, we are likely to see ongoing ‘safe- haven’ support for the dollar and the yen.” The greenback climbed 7 percent to 1,169.45 won and 0.5 percent to 9,401 Indonesian rupiah. The cost of protecting Asian corporate and sovereign bonds from non-payment climbed, according to traders of credit-default swaps. The Markit iTraxx Asia index of 50 investment-grade borrowers outside Japan rose 3.5 basis points to 111.5 basis points, Citigroup Inc. prices show. The risk benchmark is on track to rise to its highest since Dec. 1. Treasuries fell for the first time in three days on speculation reports this week will show the U.S. economic recovery is gaining momentum. The yield on the benchmark 10-year Treasury note rose one basis point to 3.60 percent, according to BGCantor Market Data. U.S. S&P 500 stock index futures rose 0.1 percent. The Institute for Supply Management factory index will show a sixth-straight month of U.S. growth, a Bloomberg News survey showed before the data release today. Payrolls probably rose by 13,000 workers last month, according to a separate survey before the Labor Department’s Feb. 5 report. To contact the reporters on this story: Sandy Hendry at shendry@bloomberg.net; Jonathan Burgos in Singapore at jburgos4@bloomberg.net.

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