June 03, 2025 (MLN): Asia-Pacific markets traded mixed Tuesday following a sharp contraction in China’s manufacturing activity, raising concerns over global demand and trade relations.The Caixin/S&P Global manufacturing purchasing managers’ index (PMI) dropped to 48.3 in May, falling below the 50-point mark that separates expansion from contraction.This marked the fastest pace of decline since September 2022 and missed Reuters’ median forecast of 50.6. The index was at 50.4 in April. A sharper fall in new export orders signaled the growing toll of restrictive U.S. tariffs.China responded on Monday by rejecting U.S. allegations of violating a temporary trade agreement, instead accusing Washington of failing to uphold its end signaling further deterioration in negotiations between the world’s two largest economies.Meanwhile, the European Union criticized U.S. President Donald Trump’s move to double steel tariffs to 50%, arguing that it "undermines" its own talks with the U.S. An EU spokesperson stated the bloc was "prepared to impose countermeasures."Japan’s Nikkei 225 pared gains to 0.2%, while the broader Topix index slipped 0.12% in volatile trading. Australia’s S&P/ASX 200 gained 0.42%, briefly hitting a near four-month high earlier in the session, as CNBC reported.The country reported a seasonally adjusted current account deficit of AU$14.7 billion ($9.53bn) for Q1 2025, exceeding the AU$13.1bn forecast but improving from a revised AU$16.3bn in the previous quarter.Hong Kong’s Hang Seng Index rose 1.55%, while Mainland China’s CSI 300 advanced 0.21%.U.S. futures declined despite a positive start to June’s trading on Wall Street. Overnight, the S&P 500 climbed 0.41% to close at 5,935.94.The Nasdaq Composite rose 0.67% to 19,242.61, while the Dow Jones Industrial Average added 35.41 points, or 0.08%, to settle at 42,305.48.Copyright Mettis Link NewsPosted on: 2025-06-03T09:18:15+05:00The post Asia stocks mixed after China factory activity shrinks appeared first on Mettis Global Link.