Factory activity across much of Asia remained subdued in June as the uncertainty surrounding U.S. trade policy weighed heavily on manufacturing sentiment, even as some economies reported slight improvements in output.
Private surveys released Tuesday painted a mixed picture. While China's Caixin Manufacturing PMI rose to 50.4, marking a return to growth, and Japan’s factory activity expanded for the first time in over a year, South Korea and other regional economies continued to contract. The prevailing weakness underscores the persistent threat posed by U.S. President Donald Trump’s sweeping tariffs on key trading partners.
Trump’s hardline trade strategy—highlighted by looming tariff hikes if deals are not struck by 9 July —has rattled exporters throughout Asia, where economies remain heavily reliant on U.S. and Chinese demand.
“Volatility in U.S. tariff policy and economic recovery uncertainty are expected to persist in the second half,” said South Korea’s Industry and Trade Minister Ahn Duk-geun, who noted that while exports have begun to rebound, shipments to key markets like the U.S. and China are still under pressure.
Mixed PMI Readings
Elsewhere in Asia, conditions remained difficult:
India stood out as the region’s bright spot, with its manufacturing PMI soaring to 58.4 in June—its highest in 14 months—thanks to surging global demand and record hiring.
Trade Tensions and Policy Response
The prospect of escalating U.S. tariffs—particularly those targeting automobiles and electronics—continues to cast a long shadow. Japan and South Korea have so far failed to secure relief from Washington, raising pressure on negotiators as the deadline looms.
Despite active trade discussions, many in the region remain cautious.
“The external environment remains severe and complex,” said Caixin Insight’s Wang Zhe. “The issue of insufficient effective demand at home has yet to be fundamentally resolved.”
In response, central banks across Asia are expected to keep easing monetary policy, prioritizing growth over inflation.
“We think most central banks in the region will continue to loosen policy—and by more than most analysts expect,” said Shivaan Tandon of Capital Economics.
With the 9 July deadline fast approaching and growth concerns mounting, Asia’s factories are bracing for more turbulence, even as some show tentative signs of recovery.
The foreign ministers of the G7 group of nations on Friday called for an immediate stop to attacks against civi...
After U.S. President Donald Trump said he would pause attacks on Iran’s ...
German Chancellor Friedrich Merz has voiced doubts about the effectiveness of the U.S. and Israeli military campaign in Iran, warning that the conf...
G7 foreign ministers have condemned attacks on civilians in the Iran war and demanded the free and safe passage of sh...
Turkish military personnel participating in NATO’s mission in Iraq have been “successfully” withdrawn from the country, the Turki...
The foreign ministers of the G7 group of nations on Friday called for an immediate stop to attacks against civilians and civilian infrastructure in the Iran war.
After U.S. President Donald Trump said he would pause attacks on Iran’s energy infrastructure for 10 days, G7 Foreign Ministers, including the U.S., called for an end to attacks on civilians in the Iran war.
German Chancellor Friedrich Merz has voiced doubts about the effectiveness of the U.S. and Israeli military campaign in Iran, warning that the conflict risks becoming prolonged and increasingly complex.
G7 foreign ministers have condemned attacks on civilians in the Iran war and demanded the free and safe passage of ships through the Strait of Hormuz.
The foreign ministers of the G7 group of nations on Friday called for an immediate stop to attacks against civilians and civilian infrastructure in the Iran war.
Northern European countries must significantly boost military drone production to help Ukraine defeat Russia, Latvia’s Prime Minister has said, warning that victory would be “impossible” without greater support.
A marine drone struck a Turkish crude oil tanker that had departed Russia, causing an explosion in the Black Sea near Istanbul's Bosphorus strait on Thursday, Türkiye's transportation minister said.
The United Nations has adopted a resolution to recognise transatlantic slavery as the "gravest crime against humanity" despite resistance from Europe and the United States. Ghana proposed it at the United Nations on Wednesday calling for reparations.
Petrol price spikes triggered by the war in Iran are boosting used electric vehicle sales across Europe, online car platforms told Reuters, in an early sign that pain at the pump is pushing consumers away from combustion engines.
AnewZ has released the official trailer for its upcoming original documentary, Halfway Across, an investigation into the systems behind illegal migration.
Hamas would have to allow its vast network of tunnels in Gaza to be destroyed as it gives up its weapons over eight months, under a disarmament plan drawn up by the U.S. President Donald Trump’s Board of Peace.
Georgia’s ambitions to position itself as a key bridge between Europe and Asia are gaining renewed attention, following a visit by senior U.S. officials and fresh talks on economic cooperation.
Uzbekistan is pursuing a dual-track development strategy, combining the expansion of its energy sector with an ambitious environmental agenda, as new oil and gas projects on the Ustyurt Plateau progress alongside large-scale greening initiatives.
Former rapper turned politician Balendra Shah, was sworn in as Nepal’s prime minister on Friday, becoming the youngest leader in decades and the first Madhesi - from the southern plains bordering India - to hold the country’s top office.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment