Asia's Manufacturing Struggles Amid U.S. Trade Pressures

Asia's manufacturing sectors faced challenges in October with slowing growth, largely due to weakened U.S. demand and existing tariffs. Despite a trade agreement between President Trump and Xi Jinping, uncertainty lingers, and improvements are only modest. Exporters remain cautious, seeking new markets while enduring ongoing economic headwinds.

Asia's big manufacturing centers experienced significant challenges this October, as revealed in business surveys on Monday. A primary cause appears to be weakened demand from the U.S. alongside tariffs imposed during President Donald Trump's administration, leading to a decline in factory orders across the region.

Private-sector purchasing managers' indexes for October highlighted a slower pace of manufacturing growth in China and a contraction in South Korea. Official PMI figures confirmed continued contraction in China's factory activity, marking the seventh consecutive month of decline, as prior efforts to circumvent U.S. tariffs waned.

Despite President Trump's recent visit to Asia resulting in tentative progress on trade negotiations with giants like China and South Korea, exporters remain guarded. The temporary tariff truce agreed between Trump and Chinese President Xi Jinping offers limited respite. Policymakers watch closely to determine whether China's $19 trillion economy will stay on course to meet 2025 growth forecasts or require additional stimulus measures.

(With inputs from agencies.)