Asia manufacturing powers ahead despite Covid-19 fears

Bloomberg

Asia’s manufacturing activity continued to advance in May, though at a slightly slower pace, despite flare-ups of Covid-19 around the region that could force some plants to close and weigh on sentiment.
Taiwan’s IHS Markit May manufacturing purchasing managers’ index declined to 62 from April’s 62.4, remaining well above the 50 level that signals expansion. New orders rose.
South Korea’s IHS Markit PMI index for May dipped to 53.7 from 54.6, while new orders fell to their lowest level since January. Japan’s au Jibun Bank and IHS Markit PMI fell to 53 from 53.6, while new orders recorded their weakest reading since February. The generally strong readings come as the
region grapples with virus infections that are forcing governments to reimpose restrictions in key corporate and consumer hubs. Vaccination rates that lag the US and Europe also could weigh on Asia’s economies.
Associated mobility restrictions have interrupted business activity and raised risks that economic rebounds could be derailed, including in pandemic-ravaged India.
Malaysia has started a two-week national lockdown to curb infections. Several factories in Thailand have closed temporarily to stem outbreaks, while authorities in Vietnam ordered companies to let workers sleep in plants to avoid disrupting production.
Even Taiwan, which had been praised for its management of the virus, reported a record tally of Covid deaths last
week that could lead authorities to extend soft lockdown measures.