Asian stocks dropped, with the regional benchmark index posing for its first fall in three days, as a report depicted Chinese manufacturing increased at smaller pace than previously expected. The MSCI Asia Pacific Index surged 0.2 %, China's Shanghai Composite Index fell 2.6%, Hong Kong's Hang Seng Index lost 1.1% while Japan's Nikkei 225 Stock Average slid 0.3% due to appreciation of the state's currency. South Korea's Kospi Index and Taiwan's Taiex Index both fell 0.4%.