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Weak manufacturing activity in China and dismal growth data fromIndia have underscored Asia's vulnerability to the European turmoiland sparked fresh calls for government intervention. Asia was long considered a global bright spot, even a haven fromEurope's deepening crisis and the weak US recovery. But thecontinent is starting to feel the heat as overseas marketsdeteriorate. World Trade Organization chief Pascal Lamy said on Thursday thatthe region was increasingly "interconnected with the rest of theplanet and I don't think this relative immunity will be forever". "I would expect, given what is happening in other parts of theworld economy, this region to be more affected than it has been sofar," he said. Lamy's fears were borne out within hours as the disappointing datastoked calls for China's and India's governments to kick-starttheir economies to escape hard landings, which could worsen thealready fragile global outlook. "China's economic slowdown is more severe than expected. Exportorders are continuing to fall, which is definitely related toEurope's debt crisis," said Liao Qun, chief economist for CiticBank International in Hong Kong. "Uncertainty in Europe is high. China needs to move faster and moreaggressively to speed up loosening of its monetary and fiscalpolicies." China's official purchasing managers' index (PMI) for manufacturingindicated a sharper-than-expected slowdown in May, while separatePMI data released by British bank HSBC showed a contraction for thesame month. China has already cut bank reserve requirements three times sinceDecember as exports -- a key engine of growth -- have stumbled,causing economic growth to weaken to its slowest pace in threeyears for the first quarter. There are signs that Beijing is ramping up spending withinfrastructure projects, but officials and state media have ruledout a massive stimulus plan like a four-trillion-yuan($635-billion) spending spree in 2008. Meanwhile, India's economy grew at a nine-year low of 5.3 percentin the first quarter, data showed Thursday, as the global downturnhit the emerging market giant. The unexpectedly grim figure was well below analysts' forecasts for6.1 percent growth and coincided with China's bleak data, dimminghopes that emerging countries will power the global economy back tohealth. HSBC's chief India economist Leif Eskesen said India's weakeningeconomy was like a "gasping elephant". "The slowdown in growth has proven deeper than expected," he said. India's other indicators are a source of worry: the rupee is athistoric lows against the dollar, annual inflation remains high ataround 7.0 percent, and the current account and public deficits arelarge. That makes it difficult for policymakers to respond to slowinggrowth, since the bulging public deficit gives little scope foradded government spending and high inflation makes cutting interestrates difficult. Elsewhere, South Korea's exports -- an indicator for the region --declined year-on-year for a third straight month in May as theeurozone turbulence and China's slowdown took their toll on theeconomy, figures showed Friday. South Korea's shipments to the United States dropped 16.5 percentand those to the European Union fell 16.4 percent. A PMI reading for resources giant Australia fell deep into negativeterritory while Taiwan's HSBC PMI fell to 50.5 from 51.2, barelystaying above the contraction level of 50. Asian stocks have taken a further hit, following a miserable May inwhich most regional markets gave up almost all the gains they hadmade since the start of 2012 as Europe's debt crisis came back intosharp focus. Companies are also yanking massive initial public offers, citingthe weak market conditions. London-based jeweller Graff Diamondssaid Thursday it had decided to delay its $1.0 billion offer inHong Kong. Another glamorous business, Formula One, is waiting for "the mostopportune" time to launch its $2.5 billion IPO in Singapore afterturbulence returned to financial markets, a source said on Friday. I am an expert from chinamachinemanufacturer.com, while we provides the quality product, such as Impact Extrusion Machine Manufacturer , Notching Machines Manufacturer, Roll Forming Machinery,and more.
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