Asia factory activity bottoms out

In April, factory activity partly recovered, although still staying on shaky ground due to the fact that global demand was still subdued because China's stimulus measures were yet to demonstrate their full pulling power.

It left the outlook for the region's major financial institutions stuck to easing, with New Zealand and Malaysia prime suspects for potential rate interest cuts, while Australia whose policymakers also meet next week faces soaring calls to ease.

According to business polls, factories were struggling worldwide, with euro zone data later on Thursday anticipated to reveal a contraction in the manufacturing sector as well as the US economy still soaring, although missing hopes for a wider margin on Wednesday.

The major US bank held interest rates intact overnight, telling it saw no strong case for either lifting or cutting them, thus disappointing American stock markets.

A resolution in the trade clash between China and America would go a long way towards improving the marketed sentiment.

Despite persisting uncertainty, American Treasury Secretary Steven Mnuchin told that the two countries completed fruitful negotiations on Wednesday and were close to an agreement that would roll back a portion of the $250 billion in American levies on Chinese goods.

Purchasing Managers' Indexes indicated that manufacturing activity shrank in Taiwan and Malaysia in April, speeded down in Indonesia and the Philippines, and picked up a notch in Thailand and Vietnam.

According to official data, activity in China managed to expand for the second month in a row in April, although at a much slower tempo than anticipated.

South Korean manufacturing snapped a five-month losing marathon, although was still poor with new export orders diving for a ninth consecutive month and also subcomponents of the index indicating sluggish demand abroad and at home.