Stocks drop, led by automakers, airlines

The mainland stocks fell, paring a second quarterly gain for the Shanghai Composite Index, as automakers and airlines fell after the government raised the price of gasoline and diesel for a third time this year.

SAIC Motor Co, the biggest carmaker, slid 4.1 percent and Air China Ltd, the nation's largest international carrier, dropped 1.4 percent on concern higher energy costs will narrow margins and deter buyers.

The Shanghai Composite declined 15.95, or 0.5 percent, to 2959.36 at the close, ending a four-day winning streak. The gauge climbed 25 percent this quarter, bringing its annual advance to 63 percent. The CSI 300 Index fell 0.4 percent to 3166.47.