Asian Currencies Edge Higher as Markets Look to Fed Rate Cut; Rupee Steadies Near Record Lows 
China Urged to Prioritize Economy Over Territorial Ambitions, Says Taiwan’s President Lai 
Germany’s Economic Recovery Slows as Trade Tensions and Rising Costs Weigh on Growth 
Gold Prices Edge Higher as Markets Await Key U.S. PCE Inflation Data 
European Oil & Gas Stocks Face 2026 With Cautious Outlook Amid Valuation Pressure 
China’s Services Sector Posts Slowest Growth in Five Months as Demand Softens 
IMF Deputy Dan Katz Visits China as Key Economic Review Nears 
Oil Prices Rise as Ukraine Targets Russian Energy Infrastructure 
Oil Prices Hold Steady as Ukraine Tensions and Fed Cut Expectations Support Market 
European Stocks Rise as Markets Await Key U.S. Inflation Data 
Japan’s Nikkei Drops as Markets Await Key U.S. Inflation Data 
BOJ Governor Ueda Highlights Uncertainty Over Future Interest Rate Hikes 
Asian Currencies Steady as Rupee Hits Record Low Amid Fed Rate Cut Bets 
Dollar Slides to Five-Week Low as Asian Stocks Struggle and Markets Bet on Fed Rate Cut 
Dollar Weakens Ahead of Expected Federal Reserve Rate Cut 
U.S. Futures Steady as Rate-Cut Bets Rise on Soft Labor Data 
Asia’s factory activity weakened in September as Chinese demand faltered and global economic uncertainty persisted. Private surveys reveal that manufacturing across the region faces headwinds, prompting policymakers to rely on China’s recent stimulus efforts, including rate cuts and liquidity boosts, to revive growth.
Policymakers Under Pressure as China's Stimulus Aims to Bolster Asia's Struggling Manufacturing Sector
Private surveys indicate that Asia's factory activity declined in September due to sluggish Chinese demand and global economic uncertainty. This has placed policymakers under pressure to support their fragile economies.
The forthcoming months may provide some respite to the region's manufacturers due to the aggressivestimulus that Chinese authorities have implemented in the past week. This stimulus includes reduced interest rates and liquidity in the banking system.
On October 1, purchasing managers' index (PMI) surveys indicated that factory activity in Japan decreased in September and expanded at a slower pace in Taiwan. These findings underscore the impact of lackluster global demand on Asian exporters.
South Korea's export growth decelerated in September, with shipments to the world's largest economy scarcely increasing, as evidenced by data released on October 1. According to Reuters, this decline is indicative of the expanding repercussions of the slowing U.S. economy.
The Caixin/S&P Global manufacturing PMI, published on September 30, indicated that factories in China were experiencing difficulty making progress. The reading fell from 50.4 in the previous month to 49.3 in September, the lowest since July last year.
The situation in Japan was comparable, as the country depends on exports to stimulate economic development in the face of low consumption. The final au Jibun Bank Japan PMI decreased from 49.8 in August to 49.7 in September, remaining below the 50.0 threshold that distinguishes growth from contraction for the third consecutive month.
According to Usamah Bhatti of S&P Global Market Intelligence, the Japan PMI survey revealed "muted trends across the manufacturing industry."
Taiwan’s Manufacturing Slows as IMF Forecasts Moderate Growth for Asia Amid Easing Inflation
In September, Taiwan's PMI decreased from 51.5 in August to 50.8. The surveys indicated that manufacturing activity declined in Vietnam, Malaysia, and Indonesia.
As inflation moderates, the International Monetary Fund (IMF) predicts that Asia's economies will experience a gentle landing, allowing central banks to relax their monetary policies to stimulate development. It anticipates that the region's growth rate will decrease from 5% in 2023 to 4.5% this year and 4.3% in 2025.
