Chinese Economy Stumbling as Factory Activity and Demand Slow

South Korea's factory production and retail sales dropped in April following slow growth in Q1.
China's economy grew 4.5% in Q1 2023, beating expectations, but its manufacturing activity figures show a steeper contraction in May.
China's official manufacturing PMI dropped to 48.8 in May, indicating contraction, and its non-manufacturing PMI also decreased, showing China's economic recovery facing challenges.
Asia's stock markets fell for a second month in a row due to weak Chinese factory activity, with MSCI's index of Asia-Pacific shares outside Japan down 2.4% in a month.
China's factory activity shrank faster than expected in May, with its manufacturing PMI falling to a five-month low, while South Korea's factory activity declined for an 11th straight month.