China’s slowing growth is sparking warnings of contagion in Asia, as waning consumer demand and slower manufacturing hit neighbouring countries with close ties to the world’s second-largest economy.A manufacturing slump in South Korea has extended to its longest in nearly half a century while other big exporters in east Asia area also being hit by slow demand.
South Korea, Asia’s fourth-biggest economy, is viewed as a bellwether for the region’s technology supply chain, which has helped underpin global growth for decades.
The country’s exports fell in July at the steepest pace in more than three years, led by smaller shipments of computer chips to China, while purchasing managers’ indices on Friday showed that factory activity fell in August for the 14th consecutive month, the longest drop in the survey’s history.