Concerns about a downturn in Asia’s exports were highlighted by two experts on Tuesday, in light of the visible cooling in demand for electronics made in Asia.
HSBC Holdings and Nomura Holdings warned that Asia’s exports are at risk of falling into a deeper downturn as the export boom, especially for electronic goods, showed demand clearly coming off the boil.
Asia is the world’s largest electronic products producing and exporting region, with the said sector accounting for 20% to 50% of the overall export value of most Asian nations.
Both lenders believe the trade surge that pushed Asia through the pandemic has reached a turning point, which aligns to signals sent by manufacturers throughout the year.
HSBC Holding said in its recent article; ‘Plop – What the latest electronics indicators signal for Asia,’ that key indicators are showing a slump in new orders, specifically with regard to demand for electronics made in Asia.
“Things are coming back down to earth – fast,” wrote HSBC’s chief Asia economist Frederic Neumann. “True, the headline electronics PMIs, freshly released for July, don’t look quite so alarming at the surface. But dig deeper, and the stumble becomes apparent.”
Meanwhile, the latest Asia export leading index from Nomura Holding suggests shipments from the region may have hit a critical inflection point.