North Asia’s factories gather steam as China output accelerates

A separate official gauge of China’s manufacturing released Monday showed exports fueled faster-than-expected activity in November, momentum that’s starting to filter across neighboring trading partners.

Factory activity in some of North Asia’s biggest export-led economies rebounded in November as China’s recovery lifts the region, purchasing managers’ indexes show.

A worker wearing a protective face mask works on a loom in a textile factory amidst the coronavirus disease (Covid-19) outbreak. (Reuters)

South Korea’s PMI rose to 52.9 last month, its highest reading since February 2011, from 51.2 in October, according to IHS Markit figures released Tuesday. Japan picked up to 49, the best reading since August 2019, from 48.7. Taiwan rose to 56.9, the highest since January 2018, from 55.1.

A separate official gauge of China’s manufacturing released Monday showed exports fueled faster-than-expected activity in November, momentum that’s starting to filter across neighboring trading partners.

The manufacturing PMI climbed to 52.1, a three-year high, from 51.4, according to data released by the National Bureau of Statistics. The non-manufacturing index rose to 56.4 after 56.2 in October.

Still, the figures from Southeast Asia were mixed. Indonesia’s index notched 50.6, for just its third reading this year above 50, the dividing line between contraction and expansion. Thailand stayed in expansion territory, while Vietnam and the Philippines were barely contracting at 49.9 each. Malaysia edged down to 48.4.

The data also are in line with the Bloomberg Trade Tracker, which over the past two months has shown robust healing from the pandemic, especially among Asian economies. With nearly all of the gauges on the tracker at or above normal range, the dashboard is keeping up the healthiest record in its more than two-year history.