Mixed Signals in Asian Manufacturing Sector Amid Economic Challenges

China's factory activity shows divergence in private and official data, while South Korea sees growth and Japan continues to contract.

China's factory activity expanded in January for the third consecutive month, according to the private Caixin/S&P Global manufacturing purchasing managers' index (PMI), which stayed at 50.8, unchanged from December.
However, an official survey showed that China's manufacturing activity contracted for the fourth straight month, indicating an underperforming economy in need of more policy support.
South Korea's factory activity expanded in January for the first time in 19 months due to improved demand for goods in key markets such as the United States and China.
Manufacturing activity in Japan shrank for an eighth straight month in January as output and new orders slumped.
The International Monetary Fund revised up its growth forecast for Asia to project an expansion of 4.5% this year, driven by robust US demand and expected stimulus measures in China.