• Investing
  • Stock
  • Editor’s Pick
  • Economy
The Significant Deals
Editor's Pick

Asia’s factories end 2024 on weak footing as Trump 2.0 risks mount

by January 2, 2025
written by January 2, 2025

(Reuters) – Asia’s factory powerhouses ended 2024 on a soft note as expectations for the new year soured amid growing trade risks from a second Donald Trump presidency and persistently weak Chinese demand.

A series of manufacturing purchasing managers’ indexes for December from across the region published on Thursday showed factory activity slowing in China and South Korea although there were some signs of a pickup in Taiwan and Southeast Asia.

U.S. President-elect Trump has pledged to impose big tariffs on imports from three major trading partners – Mexico, Canada and China – which are expected to in turn affect other large exporting nations and broader global business activity.

The Caixin/S&P Global manufacturing PMI for China nudged down to 50.5 in December from 51.5 the previous month, undershooting analysts’ forecasts, indicating activity grew only modestly.

That echoed an official survey released earlier this week, which showed factory activity barely growing.

Gabriel Ng, assistant economist at Capital Economics, said Beijing’s increased policy support in late 2024 provided a near-term boost to growth, which is likely to be seen in other fourth quarter indicators.

“And this improvement should carry over into early 2025,” Ng said. “But the boost probably won’t last more than a few quarters, with Trump likely to follow through on his tariff threat before long and persistent structural imbalances still weighing on the economy.”

Elsewhere in Asia, South Korea’s PMI showed activity shrinking in December and the decline in output gathering pace, a stark contrast to better-than-forecast export growth figures released on Wednesday.

South Korea’s central bank governor said on Thursday the pace of monetary policy easing would need to be flexible this year due to heightened political and economic uncertainty.

In addition to global trade uncertainty, South Korea is dealing with the hit to business confidence from a national political crisis after a failed bid by President Yoon Suk Yeol last month to impose martial law.

Earlier in the week, Japan’s PMI showed activity shrinking, albeit at a slower pace in December.

Malaysia and Vietnam also reported declines in factory activity.

Taiwan was a rare bright spot, with activity growing at the fastest pace in five months with PMI survey respondents reporting strong sales in Asia, Europe and North America.

And in Singapore, considered a bellwether for global trade, official data showed the city-state grew at its fastest annual pace since the pandemic in 2024, helped in part by a rush to export before expected new U.S. tariffs take effect.

This post appeared first on investing.com
0 comment
0
FacebookTwitterPinterestEmail

previous post
Thai economic uncertainty has increased, central bank minutes say
next post
Asia stocks fall tracking Wall Street, Chinese shares drop on weak factory data

You may also like

China central bank conducts 1.7 trln yuan of...

January 27, 2025

Fuji Media, rocked by sexual misconduct allegations, says...

January 27, 2025

ECB president fears loss of central bank independence

January 27, 2025

European tech shares tumble as China’s AI push...

January 27, 2025

Futures slip as investors eye China’s latest AI...

January 27, 2025

Markets may be repeating the mistake of 2019,...

January 27, 2025

How billionaire Caltagirone could influence Italy’s banking M&A...

January 27, 2025

How Italy’s MPS went from near collapse to...

January 27, 2025

Analysis-To weather Trump, emerging market investors look to...

January 27, 2025

Chinese AI startup DeepSeek overtakes ChatGPT on Apple...

January 27, 2025
Fill Out & Get More Relevant News








    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Recent Posts

    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks

      June 26, 2025
    • Women’s Tennis Association extends media rights deal with Tennis Channel through 2032

      June 26, 2025
    • Bumble shares jump 26% as dating company plans to axe 30% of workforce

      June 26, 2025
    • Small-business AI use is lagging, but one firm is channeling Sherlock Holmes and knocking out ‘grunt work’

      June 25, 2025

    Categories

    • Economy (245)
    • Editor's Pick (3,646)
    • Investing (534)
    • Stock (6,426)

    Latest News

    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks
    • Women’s Tennis Association extends media rights deal with Tennis Channel through 2032

    Popular News

    • Flour millers face supply crunch as wheat farmers tighten grip on stocks
    • Gemini agrees to $5 million fine, injunction over CFTC charges, filing shows

    About The Significant deals

    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 thesignificantdeals.com | All Rights Reserved

    The Significant Deals
    • Investing
    • Stock
    • Editor’s Pick
    • Economy