Asia factory woes extend to February

Bloomberg

Sentiment at Asia’s factories charted another weak month in February amid softening global demand and trade-war jitters.
But there were signs of bottoming too: The Caixin China purchasing managers index rose to 49.9, recovering from its biggest drop since July 2015, even as it stayed below the 50 line that separates contraction and expansion.
“There is a silver lining in that new orders are rebounding, primarily driven by domestic demand,” said Trinh Nguyen, a senior economist at Natixis Asia Ltd. Still, things are looking “ugly” for Asian manufacturers this quarter, she said.
Japan’s PMI dropped to 48.9, its weakest reading since June 2016, while Thailand and Malaysia also worsened. PMI readings for the Philippines and Vietnam also lost ground but remained in expansionary territory, while Indonesia saw a rare increase to 50.1. “It’s better than expected but don’t forget that it’s Lunar New Year,” Hao Hong, chief strategist at Bocom International Holdings Co. in Hong Kong, said to Bloomberg Television on China’s Friday reading. “We’re still not seeing a general recovery.”