SINGAPORE—Asia's economies are showing resilience as 2013 gets under way, with a variety of data indicating manufacturing and growth are starting to pick up, just as short-term uncertainty is lifting on the U.S. fiscal cliff.
Surveys released Wednesday of purchasing managers in South Korea, Taiwan and India, following similar releases from China earlier in the week, suggest manufacturing in Asia is gaining steam after a subdued 2012.
The news "cements the idea that Asia has been doing OK despite what is going on in Europe and the U.S.," HSBC HSBA.LN -0.36% Asean economist Su Sian Lim said.
HSBC's Asian electronics lead indicator for December posted its highest reading since last March, suggesting that the electronics manufacturing cycle is on the mend.
That is a significant development for countries such as South Korea and Taiwan, and was reflected in HSBC's December Purchasing Managers' Index for those countries, with the surveys indicating expansion for the first time since May.
"Someone has to buy [the electronics] and it doesn't seem that the G-3 [U.S., Europe and Japan] has the demand," said Ms. Lim.
That suggests Asian domestic consumption is robust, which could help insulate the region's manufacturers from further slowdowns in other parts the world.
HSBC's PMI for South Korea was at a seasonally adjusted 50.1 in December—its highest point since May—up from 48.2 in November and 47.4 in October.
A reading above 50 indicates expansion in manufacturing activity.
Taiwan's HSBC PMI reading for December was 50.6, moving into the expansionary zone from November's 47.4. The India HSBC PMI reading rose to 54.7 in December from 53.7 in November.
That followed PMIs from China earlier in the week, suggesting that the world's second-largest economy continues to rebound despite facing headwinds from weak conditions around the world. HSBC said Monday its China PMI rose to 51.5 in December from 50.5 in November.
On Tuesday, the China Federation of Logistics and Purchasing said its official manufacturing PMI for December was unchanged from November's 50.6, showing continued expansion.
Asian shares were higher Wednesday, bolstered by the data as well as by news that the U.S. Congress passed legislation late Tuesday to avert the so-called fiscal cliff.
But the compromise bill left a host of issues unresolved, guaranteeing continued budget clashes between the parties.
"But for those who can see over the fiscal cliff, they will see a global economy in a much healthier position than 12 months ago," Jason Hughes, head of premium client management at IG Markets Singapore, said in a note.
"Many of last year's issues—fears of a hard landing in China, a euro-zone collapse and a U.S. economy slipping back into recession—appear to be off the table as serious threats to the anemic global economic recovery that started in 2012," he said.
Singapore, often considered a bellwether for Asian economies due to its heavy exposure to global trade flows, said Wednesday that GDP grew in the last quarter of 2012 after contracting sharply in the third quarter.
Fourth-quarter GDP rose 1.8% on a seasonally adjusted and annualized basis, compared with a downward revised 6.3% contraction in the third quarter, according to advance estimates by the Ministry of Trade and Industry.
In Indonesia, the HSBC manufacturing PMI came in at 50.7 in December, from 51.5 in November, even though the components for the index continued to trend well, HSBC's Ms. Lim said. Still, there was some patchiness in the region.
The Australian Industry Group Performance of Manufacturing Index came in Wednesday at 44.3 points in December, unchanged from November's revised reading. In Vietnam, the HSBC PMI fell back into contraction territory in December, to 49.3 from 50.3 in November.
Data from Thailand and Indonesia showed that inflation remained manageable in December, suggesting those central banks have room to keep monetary policy supportive of growth.
Thailand's consumer price index in December was up 3.63% on year, from November's 2.74%, but core inflation, which strips out volatile food and energy costs, eased to 1.78% from November's 1.85%.
Indonesia's December CPI rose 4.3% from a year ago, after a 4.32% rise in November. Inflation in Indonesia is "a bit more worrying," HSBC's Ms. Lim said.
While price rises were "benign on the surface, come this year we have electricity hikes," she added, as well as strong economic growth, which may prompt Bank Indonesia to take action to cool prices.
wsj.com
Surveys released Wednesday of purchasing managers in South Korea, Taiwan and India, following similar releases from China earlier in the week, suggest manufacturing in Asia is gaining steam after a subdued 2012.
The news "cements the idea that Asia has been doing OK despite what is going on in Europe and the U.S.," HSBC HSBA.LN -0.36% Asean economist Su Sian Lim said.
HSBC's Asian electronics lead indicator for December posted its highest reading since last March, suggesting that the electronics manufacturing cycle is on the mend.
That is a significant development for countries such as South Korea and Taiwan, and was reflected in HSBC's December Purchasing Managers' Index for those countries, with the surveys indicating expansion for the first time since May.
"Someone has to buy [the electronics] and it doesn't seem that the G-3 [U.S., Europe and Japan] has the demand," said Ms. Lim.
That suggests Asian domestic consumption is robust, which could help insulate the region's manufacturers from further slowdowns in other parts the world.
HSBC's PMI for South Korea was at a seasonally adjusted 50.1 in December—its highest point since May—up from 48.2 in November and 47.4 in October.
A reading above 50 indicates expansion in manufacturing activity.
Taiwan's HSBC PMI reading for December was 50.6, moving into the expansionary zone from November's 47.4. The India HSBC PMI reading rose to 54.7 in December from 53.7 in November.
That followed PMIs from China earlier in the week, suggesting that the world's second-largest economy continues to rebound despite facing headwinds from weak conditions around the world. HSBC said Monday its China PMI rose to 51.5 in December from 50.5 in November.
On Tuesday, the China Federation of Logistics and Purchasing said its official manufacturing PMI for December was unchanged from November's 50.6, showing continued expansion.
Asian shares were higher Wednesday, bolstered by the data as well as by news that the U.S. Congress passed legislation late Tuesday to avert the so-called fiscal cliff.
But the compromise bill left a host of issues unresolved, guaranteeing continued budget clashes between the parties.
"But for those who can see over the fiscal cliff, they will see a global economy in a much healthier position than 12 months ago," Jason Hughes, head of premium client management at IG Markets Singapore, said in a note.
"Many of last year's issues—fears of a hard landing in China, a euro-zone collapse and a U.S. economy slipping back into recession—appear to be off the table as serious threats to the anemic global economic recovery that started in 2012," he said.
Singapore, often considered a bellwether for Asian economies due to its heavy exposure to global trade flows, said Wednesday that GDP grew in the last quarter of 2012 after contracting sharply in the third quarter.
Fourth-quarter GDP rose 1.8% on a seasonally adjusted and annualized basis, compared with a downward revised 6.3% contraction in the third quarter, according to advance estimates by the Ministry of Trade and Industry.
In Indonesia, the HSBC manufacturing PMI came in at 50.7 in December, from 51.5 in November, even though the components for the index continued to trend well, HSBC's Ms. Lim said. Still, there was some patchiness in the region.
The Australian Industry Group Performance of Manufacturing Index came in Wednesday at 44.3 points in December, unchanged from November's revised reading. In Vietnam, the HSBC PMI fell back into contraction territory in December, to 49.3 from 50.3 in November.
Data from Thailand and Indonesia showed that inflation remained manageable in December, suggesting those central banks have room to keep monetary policy supportive of growth.
Thailand's consumer price index in December was up 3.63% on year, from November's 2.74%, but core inflation, which strips out volatile food and energy costs, eased to 1.78% from November's 1.85%.
Indonesia's December CPI rose 4.3% from a year ago, after a 4.32% rise in November. Inflation in Indonesia is "a bit more worrying," HSBC's Ms. Lim said.
While price rises were "benign on the surface, come this year we have electricity hikes," she added, as well as strong economic growth, which may prompt Bank Indonesia to take action to cool prices.
wsj.com
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