Chinese stocks rose the most in three weeks after the nation’s manufacturing expanded for the first time since July, while Asian consumer shares dropped as Panasonic Corp. forecast a $9.6 billion loss. The yen weakened and copper advanced. China’s Shanghai Composite Index (SHCOMP) surged 1.7 percent as of 3:16 p.m. in Tokyo. The MSCI Asia Pacific Index slipped 0.2 percent. Futures on the Standard & Poor’s 500 Index slid 0.3 percent. The yen retreated against all 16 major peers. Taiwan’s 10-year note yield fell to a record. Copper added 0.7 percent. A Chinese manufacturing gauge based on a survey of purchasing managers climbed to 50.2 in October from 49.8 in September, adding to signs growth in the world’s second-biggest economy is rebounding after a seven-quarter slowdown. Panasonic’s loss projection for the year was 30 times more than estimated and helped drag rivals Sony Corp. and Sharp Corp. lower before they report results. U.S. data today may show growth at factories and gains in construction spending. “While we’ve been seeing improving economic data, it’s too early to get positive on the market given the profit warnings,� said Daphne Roth, the Singapore-based head of Asia equity research at ABN Amro Private Banking, which oversees about $207 billion. “Most indices have done quite well and investors are now focusing on fundamentals.� MSCI’s Asian gauge has climbed 12 percent since this year’s low on June 4 after the U.S., Europe and Japan added measures to spur their economies. About the same number of shares rose as fell on the index today, while a gauge of consumer discretionary companies dropped 0.6 percent. Panasonic sank 19 percent, while Sony slid 4.1 percent and Sharp lost 1.7 percent. Manufacturing Gauges Australia’s S&P/ASX 200 Index (AS51) retreated 1.3 percent, the most in since July 23, as National Australia Bank Ltd. slumped 3 percent. Anhui Conch Cement Co. rose 3.4 percent in Shanghai, pacing gains by building-material companies. A separate purchasing managers’ index released today by HSBC Holdings Plc and Markit Economics advanced to an eight-month high of 49.5 from 47.9 in September. A gauge of new orders was at the second-highest level in 17 months. A reading above 50 indicates expansion. “The worst is behind us already and China is bottoming out,� Joy Yang, the chief Greater China economist at Mirae Asset Securities (HK) Ltd. in Hong Kong, said in an interview on Bloomberg Television’s “On the Move Asia� today. The Institute for Supply Management’s U.S. factory index was probably at 51 last month from 51.5 in September, according to the median estimate of economists surveyed by Bloomberg News before the report at 10 a.m. New York time. Yen Weakness A Commerce Department report today at the same time will show construction spending climbed 0.7 percent in September after a 0.6 percent decrease, a separate survey showed. Japan’s currency fell for a third day versus the euro before the Bank of Japan releases minutes of its Oct. 4 to Oct. 5 meeting tomorrow. The yen slid 0.4 percent to 103.74 per euro and lost 0.3 percent to 80.02 per dollar. The yield on Taiwan’s 1.125 percent notes due September 2022 reached 1.124 percent earlier today, according to Gretai Securities Market. Gross domestic product will increase 1.05 percent this year, compared with an earlier estimate of 1.66 percent, the island’s statistics bureau said yesterday. Copper for delivery in three months gained 0.7 percent to $7,813.75 a metric ton. Aluminum, nickel and lead also rose at least 0.5 percent. Palladium climbed 1.2 percent to $611.90 an ounce. Wheat advanced for a second day after a U.S. government report showed winter-crop conditions for this time of the year are the worst in 27 years as drought damage extended to the Great Plains. The grain for delivery in December rose 0.5 percent to $8.69 a bushel on the Chicago Board of Trade. To contact the reporters on this story: Richard Frost in Hong Kong at rfrost4@bloomberg.net; Jonathan Burgos in Singapore at jburgos4@bloomberg.net To contact the editor responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net

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