Asian Manufacturing Sector Faces Turmoil Amid Global Trade Challenges

Factory activity has decreased in most Asian economies due to weaker U.S. growth and China's declining demand. Japan and Taiwan were notably affected, as policymakers strive to protect the region from U.S. tariffs. While South Korea's factory activity showed improvement, concerns remain for the region's economic trajectory.

Factory activity saw a downturn in many of Asia's chief economies in September, with private surveys highlighting the impact of a U.S. economic slowdown and tariffs imposed by former President Donald Trump contributing to subdued Chinese demand.

This decrease places Asian policymakers in a predicament as they work to shield the export-dependent region from the repercussions of elevated U.S. tariffs. Japan, a powerhouse in exports, and Taiwan, a prominent tech hub, both witnessed contracting manufacturing activity, as per the surveys. This has left Asian businesses, reliant on U.S. markets, in a precarious position.

Alarmingly, China, a pivotal force in the global economy, persisted in a downturn, with official data revealing a sixth consecutive month of contracting manufacturing activity. This was driven by weak domestic consumption and heightened pressures from U.S. tariffs.

(With inputs from agencies.)