Factory activity slumps in Japan, South Korea
Most emerging Asian nations see activity contract
Surveys highlight gloom spreading from weak China growth

China39;s June Caixin PMI expands marginally

TOKYO, July 3 Reuters Asia39;s factory activity slumped in June, business surveys showed on Monday, as sluggish demand in China and advanced nations clouded the outlook for the region39;s exporters.

While manufacturing activity expanded marginally in China, it contracted in powerhouses Japan and South Korea as Asia39;s fragile economic recovery struggled to maintain momentum.

The surveys underscore the toll China39;s weakerthanexpected rebound from COVID lockdowns is inflicting on Asia, where manufacturers are also bracing for the fallout from aggressive U.S. and European interest rate hikes.

The worst may have passed for Asian factories but activity lacks momentum because of diminishing prospects for a strong recovery in China39;s economy, said Toru Nishihama, chief emerging market economist at Daiichi Life Research Institute.

China is dragging its feet in delivering stimulus. The U.S. economy will likely feel the pain from big rate hikes. These factors all make Asian manufacturers gloomy about the outlook.

China39;s CaixinSP Global manufacturing purchasing managers39; index PMI eased to 50.5 in June from 50.9 in May, the private survey showed on Monday, staying above the 50point index mark that separates growth from contraction.

The figure, combined with…