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Asia's factory activity weakens as Trump tariffs jolt sentiment
A worker wearing a face mask works on a production line manufacturing bicycle steel rim at a factory, as the country is hit by the novel coronavirus outbreak, in Hangzhou, Zhejiang province, China, on Mar 2, 2020. (Photo: REUTERS)
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TOKYO: Asia's factory activity weakened in January as soft Chinese demand and threats of higher tariffs by US President Donald Trump weighed on business sentiment, private surveys showed on Monday (Feb 3), darkening the outlook for the region's economy.
The latest factory readings come as global markets tumbled after Trump on Saturday made good on his previous threats and ordered sweeping tariffs on imports from Mexico, Canada and China.
The headwinds from China and uncertainty over the fallout from Trump's policies will likely pose major headaches for Asian policymakers as they seek to underpin their economies, many of which are reliant on Chinese consumption and global trade.
China's factory activity grew at a slower pace in January, while staffing levels fell at the quickest pace in nearly five years as trade uncertainties increased, a private-sector business survey showed on Monday.
