Asian factories lashed by trade wars, slowing demand in August

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Asian factories lashed by trade wars, slowing demand in August
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The bitter trade war between China and the United States kept Asian factory acti...

TOKYO - The bitter trade war between China and the United States kept Asian factory activity mostly in decline in August, business surveys showed, strengthening the case for policymakers to unleash fresh stimulus to fend off recession risks.

Export-reliant South Korea, Japan and Taiwan also saw factory activity shrink, underscoring the growing pain from the tit-for-tat tariff war between the world’s two-largest economies. In a fresh escalation of trade tensions, the United States began imposing 15% tariffs on a variety of Chinese goods on Sunday. China reciprocated with new duties on U.S. crude.

Elsewhere in Asia, Japanese manufacturing activity fell for a fourth straight month in August, underlining a darkening outlook for the world’s third-largest economy. Manufacturers surveyed in the PMI data said the end of a construction spike ahead of the 2020 Tokyo Olympic Games and a scheduled sales tax hike in October are expected to hurt output volumes the coming months.

The country’s exports tumbled in August for a ninth straight month on sluggish demand from its biggest buyer, China, and depressed prices of computer chips globally.

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