Asian factories increase output, though US elections make traders wary
In October, Asia's number one economies reported strong factory activity, although poor showings in Korea as well as South-East Asia along with a weaker inflation outlook from the BOJ kept market reaction muted.
In this month, China's official PMI expanded at the fastest tempo for more than two years in, thus contributing to views that the world's number two economy is already stabilizing due to a credit as well as housing boom.
Meanwhile, India’s factory activity surged at the fastest pace since December 2014, driven by a soar in output as well as new orders, because Asia's third largest economy kept going up at a robust pace.
However, market participants remained quite cautious because the prospects of another American Federal Reserve interest rate lift in December spur worries as for the impact on emerging market economies, notwithstanding upbeat trends in Asia.
Asia turns to be especially vulnerable to a probable rate lift by the Fed. It’s because the region's highly indebted economies are going to feel the pinch from an ascending greenback and funding costs, though they won’t get a lift from stronger exports, which a strengthening American economy normally entails.