Latest news with #ToruNishihama
Independent Singapore
3 days ago
- Business
- Independent Singapore
Economist says not to expect Asia's manufacturing activity to ‘pick up' anytime soon after May contraction
ASIA: A 'pick-up' in Asia's manufacturing activity is not expected anytime soon, Dai-ichi Life Research Institute's chief emerging market economist Toru Nishihama said, highlighting the 'quite high reciprocal tariffs' that have hit the region, Reuters reported. On Monday, private surveys revealed that manufacturing activity across Asia fell in May, weighed down by soft demand in China and the US tariffs on businesses. Mr Nishihama noted that weak domestic demand in China is causing the country to flood the region with cheap exports, putting deflationary pressure on the region's economies. On Saturday, an official survey revealed that China's manufacturing sector contracted in May for the second consecutive month. Manufacturing activity in Japan and South Korea, both heavily reliant on trade, continued to shrink in May, with U.S. President Donald Trump's automobile tariffs casting a cloud over their export outlook. While the au Jibun Bank Japan Manufacturing Purchasing Managers' Index (PMI) increased from 48.7 in April to 49.4 in May, it stayed below the 50 mark, indicating contraction for the 11th successive month, according to the bank's press release on Monday. South Korea's PMI, at 47.7 in May, also stayed below the 50 mark for the fourth month due to weak demand and the impact of US tariffs, according to a survey by S&P Global. Both countries' economies shrank in the first quarter, as US tariffs and trade uncertainties weighed on exports and business activity. According to Reuters, there is 'little sign' that this will improve soon. Factory activity also declined in other Asian economies. Private surveys showed that Vietnam, Indonesia, and Taiwan all experienced contractions in May. Global trade tension re-escalated on Friday when US President Donald Trump accused China of violating a bilateral deal to reduce tariffs and announced the doubling of worldwide steel and aluminium tariffs to 50%. On Monday, Channel News Asia reported that China 'firmly' rejected that it had violated a sweeping tariffs deal. China also accused the US of 'seriously violating' their trade truce, as reported by The Guardian. See also 9 local companies rank on Forbes Asia's 'Best Over A Billion' list At the start of the year, the Singapore Manufacturing Federation (SMF) stated that the manufacturing outlook in the city-state is expected to be slightly better than last year, although growth will be uneven across different sectors. However, with little progress in trade talks between Asian countries and the US, analysts said the ongoing uncertainty will likely keep companies from boosting production or spending. /TISG Read also: Trade costs force 42% of Singapore firms to raise prices, HSBC finds
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.
Yahoo
3 days ago
- Business
- Yahoo
Asia's factory activity shrinks in May as US tariffs bite
By Leika Kihara TOKYO (Reuters) -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.
