Factory gauge drops to new low

A Chinese manufacturing gauge fell to a 12-month low in April, suggesting government efforts to cushion a slowdown are yet to revive the nation's factories.

The preliminary Purchasing Managers Index from HSBC Holdings Plc and Markit Economics was at 49.2, missing the median estimate of 49.6 in a Bloomberg survey, which was also March's final reading. Numbers below 50 indicate contraction.

The first reading of the economy's health in April may deepen concern over a slowdown after first-quarter data showed the weakest economic expansion since 2009. Policymakers have stepped up efforts to halt the slide, cutting banks' reserve requirement ratio by 1 percentage point.