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Bloomberg
Sentiment at Asia’s factories stabilised in March as a rebound in China buoys the region.
Japan’s Nikkei and IHS Markit manufacturing purchasing managers’ index for March rose to 49.2 from 48.9 in February, helped by a lift in new orders.
South Korea’s PMI rose to 48.8 from 47.2 in the previous month. Still, both readings remain below 50, signalling contraction. China’s official PMI rebounded to 50.5 from 49.2 in the prior month — the biggest increase since 2012.
That improvement is lifting the rest of Asia too, said Hak Bin Chua, an economist at Maybank Kim Eng Research Pte in Singapore, underpinned by optimism of a US-China trade deal and plans by China’s government to cut taxes to spur demand.
Southeast Asia, where each of the six biggest economies count China as their biggest trading partner, also saw relief in March after manufacturing sentiment was battered at the start of 2019.