Trade truce, trade schmuce. This morning’s most China sensitive Asian PMIs have swamped any fallacious good news before it even got off the launch pad. The Korea PMI:
“The continued weakness exhibited by the South Korea Manufacturing PMI during June primarily reflects the ongoing global trade slowdown. Panellists reported that this is taking its toll on their businesses, weighing on demand for goods and subsequently leading to cuts in production. Once again, it was the automobiles and electronics industries that seem to be bearing the brunt of the weakness. “Moreover, there are real concerns that global growth will continue to soften in the coming months amid ongoing tensions between China and the US over tariffs and trade. Manufacturers subsequently remain fairly subdued about the future, with even the prospect of new product lines failing to lift their spirits. “Subsequently firms are taking a cautious view to employment, preferring to not replace leavers wherever possible and also utilise existing stocks to meet current production and order requirements, rather than buy in new inputs.”
And Taiwan:
