Asia's Manufacturing Struggles Amid Global Trade Tensions

Factory activity in Asia took a hit in July, with surveys showing declining performance due to subdued global demand and uncertainty over U.S. tariffs. Japan and South Korea, vital exporters, saw their manufacturing sectors contract, highlighting challenges exacerbated by U.S. trade policies.

China's factory activity followed suit, with the S&P Global China General Manufacturing PMI dropping below the critical growth threshold, reflecting both domestic and international pressures. Analysts suggest that the region's economy is under strain from weakening business activity.

Despite the downturn, recent trade agreements between Japan, South Korea, and the United States may provide a glimmer of hope. As these lower tariffs come into effect, improved customer confidence and sales growth could ensue, bolstering manufacturing activities in the months to come.

(With inputs from agencies.)