Sector loses steam in China, S Korea

Manufacturing growth in China and South Korea slowed down in May as the pace of new orders eased amid growing uncertainty over what damage Europe’s debt crisis may do to Asia’s export-dependent economies.

Manufacturing growth in China and South Korea slowed down in May as the pace of new orders eased amid growing uncertainty over what damage Europe’s debt crisis may do to Asia’s export-dependent economies.

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China's official purchasing managers’ index (PMI) released on Tuesday fell in May to 53.9 from 55.7 in April, just below market expectations but still the 15th straight month above the threshold at 50 that separates expansion from contraction.

A companion index compiled by British research firm Markit for HSBC dropped to an 11-month low of 52.7 in May from 55.2 in April. Citigroup economists said overheating risks in China’s economy had receded under external weaknesses.