Asia's Manufacturing Hubs Struggle in October Amid Weak US Demand

Manufacturing across Asia's major production centers encountered significant headwinds in October, according to business surveys released on Monday. The weakness in U.S. demand combined with tariff policies implemented under President Donald Trump continued to suppress factory orders throughout the region. Despite Trump's recent Asia visit resulting in some trade negotiation advancements with major manufacturing economies like China and South Korea, exporters remain cautious about American market prospects. October's private-sector purchasing managers' indexes revealed manufacturing activity expanding at a reduced pace in China while contracting in South Korea, with both nations experiencing declining export orders. Previous official PMI data from Friday confirmed China's factory activity had declined for the seventh consecutive month, indicating that the earlier export surge to avoid U.S. tariffs had definitively concluded. Capital Economics China economist Zichun Huang noted that the PMIs suggest China's economy lost momentum in October across manufacturing and construction sectors, with any export benefits from recent trade agreements likely to be modest amid persistent growth challenges. While recent negotiations resulted in tariff delays, they failed to address fundamental disagreements between the superpowers. The situation varied across Asia with Malaysia and Taiwan experiencing continued factory activity declines, while Vietnam and Indonesia saw manufacturing growth accelerate.