Factory activity shrinks in Japan, South Korea
China39;s Caixin PMI rises in October, aligns with official survey
IMF warns of deflation risks in China, impact on broader Asia

TOKYO, Nov 1 Reuters Asia39;s manufacturing activity stagnated in October as a rebound in China failed to give much of a boost to regional factories, private surveys showed, a discouraging sign for policymakers bracing for a potential escalation of U.S.China trade tensions.

The readings come as the International Monetary Fund IMF warned of rising risks to Asia39;s economic outlook from trade fragmentation, China39;s property sector woes and the potential for further market turbulence.

Factory activity shrank in Japan and South Korea due to weak domestic demand and slowing growth in U.S., European and Chinese markets, the purchasing managers39; index PMI surveys showed on Friday.

In a glimmer of hope, however, China39;s manufacturing activity swung back to growth in October, helped by a slew of stimulus measures rolled out by Beijing to prop up a fragile economy.

The CaixinSP Global manufacturing PMI rose to 50.3 in October from 49.3 the previous month, a private survey showed, beating analysts39; forecasts in a Reuters poll of 49.7.

The reading echoed an official survey on Thursday, which showed China39;s manufacturing activity expanded for the first time since April in a sign the economy was stabilising.

But Krishna Srinivasan, director of the IMF39;s Asia and Pacific Department, warned…