Asia manufacturing activity weak in Oct

BEIJING, Nov 1 (AFP): Manufacturing activity across Asia remained weak in October, surveys showed today, as US and European economic woes hit demand for the clothes, shoes and electronic gadgets made in the region. Surveys of purchasing managers in Chinese factories showed activity almost stalled last month, while Taiwan, South Korea and Australia saw manufacturing contract as Europe and the United States tottered on the edge of recession. China's official purchasing managers' index (PMI) -- based on a survey of 820 manufacturers-dropped to 50.4 in October from 51.2 in September, the China Federation of Logistics and Purchasing said in a statement. HSBC said its survey of more than 430 purchasing managers in China showed activity expanded slightly, with its index hitting 51.0 in October compared with 49.9 in September and the first time it has gone above 50 since June. A reading above 50 indicates the sector is expanding, while a reading below 50 suggests a contraction. But analysts said the government's broader PMI survey was a more accurate reflection of the country's manufacturing sector, which they expect to deteriorate in the coming months as the eurozone debt crisis continues. "The policy environment is relaxed a little bit but it will not be reflected by the October data so quickly," said Ren Xianfang, a Beijing-based analyst with IHS Global Insight. HSBC said manufacturing activity in Taiwan shrank further in October to 43.7 from 44.5 in September, while South Korea saw a slight improvement with its reading increasing to 48 in October from 47.5 in the previous month.