Asian Factory Struggles Amid U.S. Tariff Tensions

Factory activity in many Asian economies contracted in June, largely due to uncertainties surrounding U.S. tariffs, which have kept demand low. These developments add pressure to the ongoing trade discussions with Washington, amid a backdrop of sluggish economic recovery prospects in the region.

Private surveys released on Tuesday expose the challenges policymakers face amid U.S. President Donald Trump's tariff initiatives. Japan experienced its first manufacturing expansion in over a year, while South Korea saw a milder contraction, according to recent data.

China's Caixin PMI marked modest growth due to new orders, despite conflicting with official reports of a contraction. Analysts predict that stalled trade talks, weakening global demand, and underwhelming growth in China will continue to impede factory performance across Asia.

(With inputs from agencies.)