Global Economy: Asia's factory pain eases as China's activity jumps

TOKYO Factory pain in Asia continued to ease in July with slowing contraction in large export-dependent nations, raising hopes that the region is constantly emerging from the devastating blow of the coronavirus pandemic.

Manufacturing activity in China expanded at the fastest pace in nearly a decade as domestic demand improved, a private sector survey showed on Monday, suggesting that the world's second-largest economy will help cushion the pandemic's hit. to world growth.

But concerns about a second wave of infections may weigh on global demand and trade sentiment, keeping any rally in Asian factory output weak, some analysts say.

Japan, meanwhile, will only enjoy a "very gradual and protracted recovery," as concerns about a resurgence in COVID-19 cases will weigh on domestic and foreign spending, said Stefan Angrick, senior economist at Oxford. Economics.

"With the pace of recovery slowing in some of Japan's key trading partners, exports and business spending are likely to continue to struggle," he said.

China's Caixin / Markit Manufacturing Purchasing Managers Index (PMI) rose to 52.8 last month from June 51.2, marking the sector's third consecutive month of growth and the biggest jump since January 2011.