Most stock markets sank Thursday after a report indicated that China's manufacturing, a mainstay of the world's second largest economy, was likely to shrink for the first time in half a year, AP reported. Investors were rattled by the results of HSBC's preliminary survey of factory purchasing managers in January, which adds to signs of China's prolonged slowdown. The report came days after data showed China's economy slowed in the final quarter of 2013. In early European trading, Germany's DAX slipped 0.2 percent to 9,697.40 and the FTSE 100 index of leading British companies lost 0.1 percent to 6,819.50. France's CAC 40 edged up less than 0.1 percent to 4,327.53. U.S. stocks were poised to fall, with Dow futures down 0.2 percent and broader S&P 500 futures off 0.1 percent. Japan's Nikkei 225 dropped 0.8 percent to close at 15,695.89 and Hong Kong's Hang Seng sank 1.5 percent to 22,733.90. South Korea's Kospi lost 1.2 percent to 1,947.59. The Shanghai Composite Index in mainland China retreated 0.5 percent to 2,042.18. Australia's S&P/ASX 200 fell 1.1 percent to 5,263.00. In currencies, the dollar slipped to 104.37 Japanese yen from 104.77 in late trading Wednesday. The euro rose to $1.3623 from $1.3537. In energy markets, benchmark U.S. crude for March delivery was down 6 cents to $96.67 in electronic trading on the New York Mercantile Exchange. The contract rose $1.76 to settle at $96.73 on Wednesday.
