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By Bloomberg

Asian stocks climbed to a seven-year high as investors weighed weak China manufacturing data against prospects for more monetary easing. The New Zealand dollar dropped after a central bank official said rate cuts aren’t in contemplation.

The MSCI Asia Pacific Index rose 0.3 percent by 2:28 p.m. in Tokyo, as Taiwan’s Taiex index surged on speculation the island will broaden access to China’s capital markets. The Hang Seng China Enterprises Index swung between gains and losses after a preliminary manufacturing report fell to the lowest in 12 months. The kiwi slipped 1 percent. Aluminum fell 0.7 percent in London.

The so-called flash purchasing managers index from HSBC Holdings Plc and Markit Economics fell to 49.2 for April, the lowest since April last year, underscoring a slowdown that prompted China’s central bank to cut banks’ reserve requirements by the most since 2008. Equities globally have rallied amid monetary easing from Australia to Europe and as stronger-than- estimated earnings in the U.S. have combined with receding expectations for June rate increases.

“The fundamental economy is not improving” in China, said Helen Lau, a metals and mining analyst at Argonaut Securities Ltd. in Hong Kong. “It is a little worrying. We’re close to the bottom. Before that happens, the government should continue with stimulus until there is a rebound.”

Economists had predicted the manufacturing purchasing managers’ index would come in at 49.6 for April, matching March’s reading. Levels below 50 signal contraction. Similar gauges are due from Europe and the U.S. later on Thursday.

Hang Seng

The Hang Seng China Enterprises Index, a gauge of mainland shares listed in Hong Kong, rallied 22 percent this year through yesterday. The benchmark Hang Seng Index gained 0.5 percent Thursday. The Shanghai Composite Index swung between a drop of 0.9 percent and a 0.7 percent increase.

Australia’s S&P/ASX 200 Index retreated 0.1 percent. Copper for three-month delivery on the London Metal Exchange dropped as much as 0.8 percent before trading little changed at $5,912 a tonne, while nickel fell 0.3 percent.

The kiwi slipped to 75.82 U.S. cents and touching its weakest intraday level since April 15. Reserve Bank of New Zealand Assistant Governor John McDermott said that with inflation near zero, policy makers would need to be confident in “a substantial increase” in price levels before any tightening was considered.

Monty Python

“Officials still bear the scars from prior inflation battles, leading McDermott to declare the inflation dragon is not dead, but ‘‘merely sleeping’’,” Ben Jarman, a senior economist at JPMorgan Chase & Co. in Sydney. wrote in a note Thursday. “Just as markets are risking complacency in assuming inflation is dead -- particularly in a strongly growing economy -- the RBNZ carries the symmetric risk that, as with Monty Python’s parrot, death is mistaken for sleeping.”

The euro dropped 0.1 percent to $1.0714. South Korea’s won and Malaysia’s ringgit weakened at least 0.2 percent versus the greenback.

West Texas Intermediate crude for June delivery rose 0.2 percent at $56.29 a barrel after dropping 0.8 percent Wednesday. A U.S. government report showed record oil inventories swelled further even as fewer active drill rigs led to a drop in output.

Half of the 41 fracking companies operating in the U.S. will be dead or sold by year-end because of slashed spending by oil companies, an executive with Weatherford International Plc said.

Brent oil was little changed at $62.80 a barrel following Wednesday’s 1.1 percent climb, when a Saudi Arabia-led coalition renewed air raids on Shiite rebels in Yemen, reigniting concerns over supply disruptions in the region.