Home Asia: PMIs pull back – TDS
FXStreet News

Asia: PMIs pull back – TDS

Mitul Kotecha, senior emerging markets strategist at TD Securities, suggests that their composite GDP weighted Asia manufacturing PMI measure recorded a renewed slip into contraction in October while the average Asia PMI measure remained in contraction for a fifth straight month.

Key Quotes

“Our ex-China measures of PMI also remained in contraction. The outcome is disappointing given US-China trade deal hopes, but highlights the reality that a “Phase 1” deal may provide limited relief. The data also shows that Asia remains vulnerable to the worsening US manufacturing outlook. An eventual trade deal will likely boost the PMIs but the down draft on global manufacturing will not ease quickly.”

“The October manufacturing PMIs revealed declines in 5 out of 9 countries; China (-0.5), Taiwan (-0.2), Thailand (-0.6), Indonesia (-1.4), and India (-0.8), recording falls. In contrast Singapore (+0.1), South Korea (+0.4), Philippines (+0.3) and Malaysia (+1.4) gained.”

“PMIs are in contraction territory in 6 out of 9 countries, with Taiwan re-joining others recording below 50 readings. Philippines registered the strongest reading at 52.1 while Indonesia recorded the weakest at 47.7. Notably China revealed its weakest reading since February.”

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.