The dollar fell against the majority of its most-traded peers after a private report signaled China’s manufacturing activity was stronger in August than a month earlier, boosting demand for higher-yielding assets. The Australian dollar and South Korean won rose as Asian stocks advanced for the first time in four days after the report eased concern that Asia’s largest economy is slowing. The yen fell against 12 of its 16 most-traded counterparts after Japanese Finance Minister Yoshihiko Noda said excessive movements in the currency can hurt the nation’s recovery, raising prospects officials will act to curb gains. The China PMI number was “constructive for sentiment,” said Sacha Tihanyi, a Hong Kong-based senior currency strategist at Scotia Capital, the investment banking unit of Bank of Nova Scotia. “The won and Aussie were quite nicely boosted from that.” The dollar fell to $1.0431 per Australian dollar as of 12:14 p.m. in Tokyo from $1.0409 in New York yesterday. The won rose 0.3 percent 1,080.75 per dollar. Europe’s 17-nation currency traded at $1.4377 from $1.4358 yesterday, when it fell 0.3 percent. It fetched 110.38 yen from 110.26. The yen was at 76.77 per dollar after yesterday falling 0.3 percent to 76.79. It strengthened to a post-World War II record of 75.95 per dollar on Aug. 19. The Chinese gauge was 49.8 in August after a final reading of 49.3 for July, HSBC Holdings Plc and Markit Economics said in a statement today. The final August reading is due Sept. 1. A reading below 50 indicates a contraction. To contact the reporter on this story: Candice Zachariahs in Sydney at czachariahs2@bloomberg.net; Monami Yui in Tokyo at myui1@bloomberg.net To contact the editor responsible for this story: Rocky Swift at rswift5@bloomberg.net

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