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China Leads Slump in Asia Factories as Trade War Cools Demand

  • Global export growth tipped to slow further through 2019
  • Manufacturing oriented economies in Asia already feeling pain
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China is still on a sliding path, says Frederic Neumann, co-head of Asian economics at HSBC.(Source: Bloomberg)
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Factory conditions across some of Asia’s most export-oriented economies slumped in December, hit by the U.S.-China trade war and a fading technology boom.

In China, the Caixin Media and IHS Markit PMI fell to 49.7 from 50.2, its lowest reading since May 2017. That confirms a trend seen in the official PMI on Monday, which showed a drop to 49.4 in December, the weakest since early 2016. A reading below 50 signals contraction.