Asian stocks dropped, with the regional benchmark index heading for its first decline in five days, as material and energy shares led losses after oil resumed its selloff amid signs China’s economy is deteriorating.

The MSCI Asia Pacific Index slid 0.3 percent to 122.29 as of 9:01 a.m. in Tokyo. The gauge on Monday capped its longest winning streak of the year, gaining 4.1 percent in four days, as optimism grew that central banks around the world will support financial markets. Crude tumbled Monday after China’s official factory gauge signaled a record sixth straight month of deterioration.

Federal Reserve Vice Chairman Stanley Fischer said on Monday that the impact of recent market turbulence on U.S. growth could factor into decision-making, helping U.S. stocks shrug off the oil slump to close little changed. Futures on the Standard & Poor’s 500 Index fell 0.4 percent on Tuesday.

Japan’s Topix index lost 0.8 percent, after rallying more than 5 percent over the previous two days on the Bank of Japan’s unexpected stimulus boost. South Korea’s Kospi index slid 0.6 percent. New Zealand’s benchmark gauge added 0.2 percent. Australia’s S&P/ASX 200 Index retreated 0.6 percent before the nation’s central bank reviews its monetary policy.

Futures on the FTSE China A50 Index added 0.2 percent in most recent trading, while those for Hong Kong’s Hang Seng Index slipped 0.2 percent. The Shanghai Composite Index slumped 1.8 percent on Monday after official factory gauge signaled a record sixth straight month of deterioration, raising the stakes for policy makers struggling to prop up the economy amid a second bear market in stocks since June and a currency at a five-year low.

Source : Bloomberg