Asian factories cool as export orders slide

SLOW DOWN: An employee welds a water turbine at a factory in Jinhua. Asia's factory sector lost momentum in May as new export orders in the trading bellwethers of China, Taiwan and South Korea fell or cooled. - Reuters

BEIJING: Asia's factory sector lost momentum in May as new export orders in the trading bellwethers of China, Taiwan and South Korea fell or cooled, reinforcing the view that the world economic outlook is dimming in the second quarter.

The HSBC China purchasing managers' index (PMI) fell in May to 49.2, the lowest level since October 2012 and down from April's final reading of 50.4. A reading below 50 suggests a contraction in activity from the previous month, while a reading above that level points to expansion.