Asia's Manufacturing Struggles Amid Trade Shifts

Asia's manufacturing sectors faced mixed conditions in November, with key players like China and Japan reporting declines due to sluggish demand and ongoing trade challenges. Despite some growth in emerging markets, persistent deflation and inventory levels hindered a robust recovery, amid new trade dynamics influenced by U.S. policies.

In November, Asia's manufacturing landscape demonstrated uneven performance, hindered by sluggish demand and the complex trade dynamics shaped by U.S. policies. While nations like China and Japan saw declines in manufacturing activity, emerging markets like Indonesia and Vietnam reported growth.

According to various purchasing managers' indexes, China's factory activity dipped back into contraction, underscoring persistent deflationary pressures and high inventory levels. Despite trade deals easing some tensions, manufacturing in Japan struggled amid reduced orders and constrained capital investments.

Interestingly, while official data pointed to weakening conditions in some areas, recent months have seen exports surge across the region. This favorable trend paints a mixed picture, suggesting cautious optimism for Asia's export-driven manufacturing sectors as they adapt to a rapidly evolving trade environment.

(With inputs from agencies.)