Asian factory activity contracts in May as US tariffs sap demand
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The news: Factory activity in Japan and South Korea contracted in May as weak demand in China and US President Donald Trump's tariffs took their toll on companies, according to private surveys.
The numbers: Japan's final au Jibun Bank Manufacturing Purchasing Managers' Index (PMI) stood at 49.4 in May, up from April but still below the 50 line that indicates contraction for the 11th successive month.
The PMI for South Korea stood at 47.7 in May, staying below the 50 mark for a fourth month, a survey by S&P Global showed.
The context: The new data in Japan and South Korea compounded figures from an official survey over the weekend that showed China's manufacturing activity shrank in May for a second straight month.
Vietnam, Indonesia and Taiwan also saw factory activity contract in May, private surveys showed.
Trump's tariffs and uncertainty over trade negotiations with the US has weighed on exports and corporate activity in Asian economies.
The source: Reuters
