Factory activity shrinks across Asia, global recession fears mount

Such growth indicators are likely to deteriorate further in coming months as higher trade tariffs take their toll on global commerce and further dent business and consumer sentiment leading to job losses and delays in investment decisions. “The additional shock from the escalated trade tensions is not going to be good for global trade and if demand in the U.S., China and Europe continues to soften, which is very likely, it will bode ill for Asia as a whole,” said Aidan Yao, senior emerging markets economist at AXA Investment Managers. The trade conflict between China and the United States suddenly escalated last month when Trump raised tariffs on hundreds of billions of Chinese imports to 25% from 10% and threatened levies on all Chinese goods.

Source: www.reuters.com