Asian factories emerge from pandemic drag, China leads
August had seen Asian factories emerging from the disruptions brought by the coronavirus. This followed after encouraging signs in China fuelled optimism for a stronger rebound in global demand, relieving policymakers from the pressure of implementing necessary measures to avoid a deeper recession.
China’s Caixin/Markit Manufacturing Purchasing Managers’ Index reached 53.1 in August. This came larger than July’s 52.8 reading, marking the sector’s fourth month of growth and the largest increase since 2011.
Japan and South Korea’s manufacturing output declined at the slowest pace in six months. This brought up expectations that the two export-reliant countries have fully recovered from virus-driven demand slumps.
While there was an increase in most parts of Asia, the spill-over to other parts of the continent remained patchy.