Asia manufacturing turns soft as China's construction loses steam

HONG KONG -- The recovery of Asian manufacturing proved to be short-lived. Of the 12 economies tracked by The Nikkei across the region, seven registered slower growth and three saw contractions in May. Analysts noted that the downturn has much to do with weaker demand from China, whose credit has tightened and construction slackened.

The Nikkei ASEAN Manufacturing Purchasing Managers' Index in May -- which tracks the Philippines, Myanmar, Vietnam, Indonesia, Thailand, Malaysia and Singapore -- slipped 0.6 point from a month earlier to 50.5. A measure above 50 indicates expansion, while anything below signals deterioration.