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China's manufacturing activity is contracting in May after months of slowing growth, preliminary HSBC data show, with the result slamming stocks.

LOS ANGELES (MarketWatch) -- China's manufacturing activity was contracting in May, according to preliminary data released Thursday, as HSBC's "flash" Purchasing Managers' Index fell to a seven-month low of 49.6 from April's final reading of 50.4. A result below 50 signals contraction. Both the new orders and new export orders sub-indexes registered decreases in the preliminary survey, which generally includes 85%-90% of the total survey responses used for the final reading. Hong Kong's Hang Seng Index traded 1% lower, while the Australian dollar fell to 96.34 U.S. cents from 96.62 U.S. cents ahead of the data.

HONG KONG (MarketWatch) -- Hong Kong stocks dropped early Thursday as concerns that the Federal Reserve was considering winding down its bond purchases weighed on sentiment, with investors also cautious ahead of a preliminary reading on Chinese manufacturing activity in May. The Hang Seng Index lost 0.9% to 23,051.27 and the Hang Seng China Enterprises Index gave up 0.9% to 10,952.08. Financial stocks paced the drop, with heavyweights HSBC Holdings PLC , China Construction Bank Corp. and AIA Group Ltd. shedding 0.8%, 1.2% and 1.3%, respectively. Among other notable decliners, food-product makers Tingyi Cayman Islands Holding Corp. and Want Want China Holdings Ltd. fell 2.3% and 2.2%, respectively. China's Shanghai Composite eased 0.4%, ahead of the HSBC flash Purchasing Managers' Index for May, which is expected to show a mild and steady improvement in activity during the month.

Australian and South Korean stocks drop on worries the Federal Reserve could downscale its bond purchases, while Japanese shares march to fresh multiyear highs as several exporters get a lift from the weakened yen.

A little light reading to distract you from the cracks in your ceiling.

LOS ANGELES (MarketWatch) - Stocks in Australia slipped Thursday, with miners and banks lower as investors awaited monthly data about manufacturing-sector activity in China, Australia's largest trading partner. The S&P/ASX 200 lost 0.4%, pressured by a decline of 2.8% in shares of gold producer Newcrest Mining Ltd. and a fall of 1.1% in shares of Fortescue Metals Group Ltd. . Shares of BHP Billiton Ltd. swung between minor losses and gains. Among major banks, stock in Australia & New Zealand Banking Group fell 1.7%, heading for its fourth consecutive decline, and Commonwealth Bank of Australia gave up 1.5%. But shares of James Hardie Industries PLC were up 2% after the home siding maker of 24 U.S. cents a share, and said it foresees sustainable recovery in U.S. housing.

HONG KONG (MarketWatch) -- Japanese stocks on Thursday sidestepped concerns that the U.S. Federal Reserve may downscale its monetary stimulus to rise further toward multiyear highs, with a weakened yen giving several exporters a lift and offsetting losses in banks. The Nikkei Stock Average rose 0.7% after ending at a fresh high since December 2007 in each of the last four trading days, while the broader Topix was up a more modest 0.2%. Canon Inc. jumped 3.4%, Fast Retailing Co. gained 2.9% and Fanuc Corp. added 1% as the dollar traded above ¥103. Those gains outweighed a 1.4% drop for Sumitomo Mitsui Trust Holdings Inc. and a 1.9% fall for Shinsei bank Ltd. after a lower finish on Wall Street overnight. Toyota Motor Corp. rose 0.6% after the Nikkei reported it has decided to raise its production goal in the fiscal first half ending Sept. 30. Komatsu Ltd. climbed 0.9% after a separate Nikkei report said it plans to raise its capital levels by boosting profits and repaying debt.

H-P exceeds earnings expectations even though the tech giant posted a drop in profit and sales. Shares rally more than 13%, though CEO Meg Whitman said '"we still have a long way to go" in turnaround.

Co announced the pricing of the previously announced public offering of 15,000,000 shares of common stock by affiliates of The Carlyle Group (CG), at a price to the public of $16.00 per share. Upon completion of the offering, Carlyle will beneficially own approximately 41.0% of the outstanding common stock of Wesco Aircraft. The offering is expected to close and settle on May 29, 2013. Carlyle and...

A May 22 First Take by MarketWatch misstated the fiscal quarter for Hewlett-Packard. The story has been corrected.