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Business Recorder
3 days ago
- Business
- Business Recorder
Asia's factory activity shrinks in May as US tariffs bite
TOKYO: Asia's factory activity shrank in May as soft demand in China and the impact of US tariffs took a heavy toll on companies, private surveys showed on Monday, highlighting the darkening outlook for the once fast-growing region. Trade-reliant Japan and South Korea continued to see manufacturing activity contract in May as US President Donald Trump's automobile tariffs cloud the outlook for exports. Adding to the gloom, an official survey on Saturday showed China's manufacturing activity shrank in May for a second month in a sign of weakness in the world's second-largest economy. With many Asian economies making little progress in trade negotiations with the US, uncertainty will likely keep companies from boosting production or spending, analysts said. 'It's hard to expect a pick-up in Asia's manufacturing activity any time soon with countries in the region slapped with quite high 'reciprocal' tariffs,' said Toru Nishihama, chief emerging market economist at Dai-ichi Life Research Institute. 'With domestic demand weak, China is flooding Asia with cheap exports, which is also putting deflationary pressure on the region's economies,' he said. Japan's final au Jibun Bank Manufacturing Purchasing Managers' Index (PMI) stood at 49.4 in May, up from April but staying below the 50.0 line that indicates contraction for the 11th successive month, a private survey showed on Monday. The PMI for South Korea, Asia's fourth-largest economy, stood at 47.7 in May, also staying below the 50 mark for a fourth month due to frail demand and the hit from US tariffs, a survey by S&P Global showed. Both Japan and South Korea saw their economies contract in the first quarter, as Trump's tariffs and uncertainty over US trade policy weighed on exports and corporate activity. There is little sign conditions will improve. On Friday, Trump said China had violated a two-way deal to scale back tariffs, whereas China contended it had maintained communication on trade with the United States. Trump also announced a doubling of worldwide steel and aluminium tariffs to 50%, once again rattling international trade. Japan and the US on Friday agreed to hold another round of trade talks ahead of the G7 summit in June, but Japan's top tariff negotiator said no deal would be reached without concessions on all US tariffs, including on automobiles. Vietnam, Indonesia and Taiwan also saw factory activity contract in May, private surveys showed.
The Star
3 days ago
- Business
- The Star
Asia's factory activity shrinks in May as US tariffs bite
A welder works on a K9 Howitzer at Hanwha Aerospace's manufacturing facility in Changwon, South Korea, on Thursday, April 18, 2024. - Bloomberg TOKYO: Asia's factory activity shrank in May as soft demand in China and the impact of U.S. tariffs took a heavy toll on companies, private surveys showed on Monday, highlighting the darkening outlook for the once fast-growing region. Trade-reliant Japan and South Korea continued to see manufacturing activity contract in May as U.S. President Donald Trump's automobile tariffs cloud the outlook for exports. Adding to the gloom, an official survey on Saturday showed China's manufacturing activity shrank in May for a second month in a sign of weakness in the world's second-largest economy. With many Asian economies making little progress in trade negotiations with the U.S., uncertainty will likely keep companies from boosting production or spending, analysts said. "It's hard to expect a pick-up in Asia's manufacturing activity any time soon with countries in the region slapped with quite high 'reciprocal' tariffs," said Toru Nishihama, chief emerging market economist at Dai-ichi Life Research Institute. "With domestic demand weak, China is flooding Asia with cheap exports, which is also putting deflationary pressure on the region's economies," he said. Japan's final au Jibun Bank Manufacturing Purchasing Managers' Index (PMI) stood at 49.4 in May, up from April but staying below the 50.0 line that indicates contraction for the 11th successive month, a private survey showed on Monday. The PMI for South Korea, Asia's fourth-largest economy, stood at 47.7 in May, also staying below the 50 mark for a fourth month due to frail demand and the hit from U.S. tariffs, a survey by S&P Global showed. Both Japan and South Korea saw their economies contract in the first quarter, as Trump's tariffs and uncertainty over U.S. trade policy weighed on exports and corporate activity. There is little sign conditions will improve. On Friday, Trump said China had violated a two-way deal to scale back tariffs, whereas China contended it had maintained communication on trade with the United States. Trump also announced a doubling of worldwide steel and aluminium tariffs to 50%, once again rattling international trade. Japan and the U.S. on Friday agreed to hold another round of trade talks ahead of the G7 summit in June, but Japan's top tariff negotiator said no deal would be reached without concessions on all U.S. tariffs, including on automobiles. Vietnam, Indonesia and Taiwan also saw factory activity contract in May, private surveys showed. - Reuters
Time of India
3 days ago
- Business
- Time of India
Asia's factory output declines in May amid weak demand from China, US tariffs
Asia's factory activity declined in May, hit by weak demand from China and the ongoing impact of US tariffs, according to private surveys released Monday, signaling a slowdown in the region's economy. Tired of too many ads? go ad free now Manufacturing operations in Japan and South Korea experienced ongoing decline during May, while concerns about US President 's automobile tariffs cast uncertainty over export prospects. Further economic concerns emerged as China's official survey revealed continued manufacturing decline in May, marking two consecutive months of contraction in the largest Asian economy. Analysts said that slow progress in trade talks with the US is keeping businesses cautious about increasing production or investment. "It's hard to expect a pick-up in Asia's manufacturing activity any time soon with countries in the region slapped with quite high 'reciprocal' tariffs," Toru Nishihama, chief emerging market economist at Dai-ichi Life Research Institute told Reuters. "With domestic demand weak, China is flooding Asia with cheap exports, which is also putting deflationary pressure on the region's economies," he added. Japanese manufacturing PMI data from au Jibun Bank indicated 49.4 for May, showing improvement from April whilst remaining in contraction territory for the eleventh consecutive month, according to Monday's private survey. The fourth-largest Asian economy recorded 47.7 in May, continuing below the 50-point threshold for four straight months, affected by weak demand and US tariffs, as reported by S&P Global. Both Japanese and South Korean economies contracted in the first quarter, impacted by Trump's tariffs and US trade policy uncertainty affecting exports and business activities, with no immediate signs of improvement visible. Tired of too many ads? go ad free now Earlier on Friday, Trump accused China of violating bilateral tariff reduction agreements, while China maintained that it had sustained trade communications with the United States. US commerce secretary Howard Lutnick added fuel to the fire, saying on Fox News that China was 'slow-rolling' the agreement. China swiftly rejected the accusations, calling them baseless and 'seriously contrary to the facts.' In a strong statement, its commerce ministry said Beijing "firmly rejects these unreasonable accusations." Trump further announced that global tariffs on steel and aluminium would be doubled from 25% to 50%, saying the move is aimed at providing stronger protection for the US steel industry. Meanwhile, Japan and the US agreed to hold another round of trade talks ahead of the G7 summit in June. However, Japan's top tariff negotiator stated that no deal would be made without concessions on all US tariffs, including those on automobiles. The private surveys further showed that Vietnam, Indonesia and Taiwan also saw factory activity contract in May.
New Straits Times
4 days ago
- Business
- New Straits Times
Asia's factory activity shrinks in May as US tariffs bite
TOKYO: Asia's factory activity shrank in May as soft demand in China and the impact of US tariffs took a heavy toll on companies, private surveys showed on Monday, highlighting the darkening outlook for the once fast-growing region. Trade-reliant Japan and South Korea continued to see manufacturing activity contract in May as US President Donald Trump's automobile tariffs cloud the outlook for exports. Adding to the gloom, an official survey on Saturday showed China's manufacturing activity shrank in May for a second month in a sign of weakness in the world's second-largest economy. With many Asian economies making little progress in trade negotiations with the US, uncertainty will likely keep companies from boosting production or spending, analysts said. "It's hard to expect a pick-up in Asia's manufacturing activity any time soon with countries in the region slapped with quite high 'reciprocal' tariffs," said Toru Nishihama, chief emerging market economist at Dai-ichi Life Research Institute. "With domestic demand weak, China is flooding Asia with cheap exports, which is also putting deflationary pressure on the region's economies," he said. Japan's final au Jibun Bank Manufacturing Purchasing Managers' Index (PMI) stood at 49.4 in May, up from April but staying below the 50.0 line that indicates contraction for the 11th successive month, a private survey showed on Monday. The PMI for South Korea, Asia's fourth-largest economy, stood at 47.7 in May, also staying below the 50 mark for a fourth month due to frail demand and the hit from US tariffs, a survey by S&P Global showed. Both Japan and South Korea saw their economies contract in the first quarter, as Trump's tariffs and uncertainty over US trade policy weighed on exports and corporate activity. There is little sign conditions will improve. On Friday, Trump said China had violated a two-way deal to scale back tariffs, whereas China contended it had maintained communication on trade with the United States. Trump also announced a doubling of worldwide steel and aluminium tariffs to 50 per cent, once again rattling international trade. Japan and the US on Friday agreed to hold another round of trade talks ahead of the G7 summit in June, but Japan's top tariff negotiator said no deal would be reached without concessions on all US tariffs, including on automobiles.
Straits Times
4 days ago
- Business
- Straits Times
Asia's factory activity shrinks in May as US tariffs bite
Asia's factory activity shrank in May as soft demand in China and the impact of US tariffs took a heavy toll on companies, private surveys showed. PHOTO: EPA-EFE Asia's factory activity shrinks in May as US tariffs bite - Asia's factory activity shrank in May as soft demand in China and the impact of US tariffs took a heavy toll on companies, private surveys showed on June 2, highlighting the darkening outlook for the once fast-growing region. Trade-reliant Japan and South Korea continued to see manufacturing activity contract in May as US President Donald Trump's automobile tariffs cloud the outlook for exports. Adding to the gloom, an official survey on May 31 showed China's manufacturing activity shrank in May for a second month in a sign of weakness in the world's second-largest economy. With many Asian economies making little progress in trade negotiations with the United States, uncertainty will likely keep companies from boosting production or spending, analysts said. 'It's hard to expect a pickup in Asia's manufacturing activity any time soon with countries in the region slapped with quite high 'reciprocal' tariffs,' said Mr Toru Nishihama, chief emerging market economist at Dai-ichi Life Research Institute. 'With domestic demand weak, China is flooding Asia with cheap exports, which is also putting deflationary pressure on the region's economies,' he said. Japan's final au Jibun Bank Manufacturing Purchasing Managers' Index (PMI) stood at 49.4 in May, up from April but staying below the 50 line that indicates contraction for the 11th successive month, a private survey showed on June 2. The PMI for South Korea, Asia's fourth-largest economy, stood at 47.7 in May, also staying below the 50 mark for a fourth month due to frail demand and the hit from US tariffs, a survey by S&P Global showed. Both Japan and South Korea saw their economies contract in the first quarter, as Mr Trump's tariffs and uncertainty over US trade policy weighed on exports and corporate activity. There is little sign conditions will improve. On May 30, Mr Trump said China had violated a two-way deal to scale back tariffs, whereas China contended it had maintained communication on trade with the US. Mr Trump also announced a doubling of worldwide steel and aluminium tariffs to 50 per cent, once again rattling international trade. Japan and the US on May 30 agreed to hold another round of trade talks ahead of the Group of Seven summit in June, but Japan's top tariff negotiator said no deal would be reached without concessions on all US tariffs, including on automobiles. Vietnam, Indonesia and Taiwan also saw factory activity contract in May, private surveys showed. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
