China's factory gauges show further slowdown on weak demand, Nikkei Asia reports

China's factory gauges showed further signs of slowdown on weak demand today, Nikkei Asia reports. The softer readings raise fresh questions about the strength of the country’s industrial rebound and the knock-on effects for global supply chains and commodity demand. Slowing domestic and export orders risk undercutting growth plans and intensify pressure on Beijing to shore up activity.

Key purchasing managers’ indicators tracking output and new orders weakened, pointing to cautious sentiment across manufacturers, according to Nikkei Asia. Sectors from electronics to machinery are contending with inventory overhangs and tighter margins as buyers hold back, while markets gauge potential policy support and currency moves. Investors will watch upcoming PMI releases, policy guidance from the People’s Bank of China, and new trade and credit data for signs of a turn. [Developing. This article will be updated.]