Asia's major manufacturing hubs are facing a rocky ride from rising global trade tensions.
The biggest risk for China's manufacturing sector stems from a potentially crippling trade war with the United States. Forthcoming trade tensions could put pressure on trade and related supply chain activities. Investment decisions in potentially affected industries have been delayed.

New export orders for Chinese factories have fallen for a second straight month.

A full-blown Sino-US trade war will ripple through global supply chains, hurting economies from Europe to Mexico through to Australia and Japan.

Any stress on Japanese exports will put more pressure on the economy which contracted at the start of the year. Japan’s domestic business growth is slowing and only a modest pickup is seen in export orders.

Activity in South Korea, another major export hub, contracted for a third straight month as new orders continued to decline, prompting companies to cut staff at the fastest pace in almost a decade.

Taiwan’s factory growth slowed in May to a 22-month low for new orders.

India’s manufacturing sector grew at a softer pace in May, while rising inflationary pressures added to expectations that an interest rate hike is around the corner.