PMI continues to point to weak activity in China and export oriented Asian economies

Other than Emerging markets in Asia, PMIs also point to weakness in activity. Only in India is the PMI above 50, while in export-oriented economies such as Taiwan and Korea, PMIs have been below 50 for four consecutive months. 

This divergence is corroborated by weaker export and industrial prints in north Asia, while south Asia, particularly India, continues to enjoy better cyclical activity. 

"This divergence is expected to persist, even as US and global growth outlooks improve at the margin. Overall, policy biases across Asia will remain towards further monetary and fiscal accommodation", says Barclays.