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

Manufacturing across Asia's major production centers experienced difficulties in October, according to business surveys released on Monday. The weakness stemmed from reduced U.S. demand and ongoing tariff measures implemented under the Trump administration, which have negatively affected factory orders throughout the region. Despite President Trump's recent visit to Asia that resulted in some trade negotiation progress with major manufacturing economies like China and South Korea, exporters remain cautious about American market demand. Private-sector purchasing managers' indexes for October revealed manufacturing activity expanding at a slower rate in China while contracting in South Korea, with both nations experiencing declining export orders. Earlier official PMI data confirmed China's factory activity decreased for the seventh consecutive month, indicating that the previous export surge to avoid U.S. tariffs had conclusively ended. Economic analysts note that while some temporary weakness may reverse shortly, the benefits from recent trade agreements are expected to be limited, with broader growth challenges continuing. The agreement between Trump and Chinese President Xi Jinping included a one-year delay in reciprocal tariffs but did little to resolve fundamental disagreements between the two economic powers. Other Asian economies including Malaysia and Taiwan also saw manufacturing declines, though Vietnam and Indonesia experienced improved production growth.