Asia's factory activity expands in June on solid global demand

It offers policymakers some hope that region can withstand impact of soft Chinese demand

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Asia's factory activity expanded in June on solid momentum in the global economy and brightening prospects for semiconductor output, surveys showed on July 1, offering policymakers some hope that the region can weather the hit from soft Chinese demand.

But cost pressures weighed on manufacturers in countries such as Japan, where the weak yen is boosting the price that companies pay for fuel and raw material imports.

China's Caixin/S&P Global manufacturing purchasing managers' index (PMI) rose to 51.8 in June from 51.7 in May, a private survey showed on July 1, remaining above the break-even line of 50 that separates growth from contraction.

It marked the fastest clip in more than three years, and exceeded market forecasts of 51.2.