Asia's factory emerges from pandemic

Tokyo

Asia’s factory pain showed signs of easing in June, as a rebound in China’s activity offered some hope the region may have passed the worst of the devastation caused by the coronavirus pandemic. But sluggish global demand and fears of a second wave of infections will take any optimism on the outlook and keep pressure on policymakers to support their ailing economies.

A series of business surveys released on Wednesday showed broad improvements in manufacturing across Asia in June from the depths hit in April and May. Activity in some economies swung to growth while declines in other places slowed, according to Reuters.

In China, factory activity grew at a faster clip in June after the world’s second-largest economy lifted coronavirus lockdown measures, the Caixin/Markit purchasing managers’ index (PMI) showed. Manufacturing activity also expanded in Vietnam and Malaysia, pointing to a slow but steady recovery ahead.