Asian markets are still in a slump and this time the prime mover was China's PMI (manufacturing) index, which fell just above the 50 mark, which separates downturn from expansion. Everything is relative, however, given that the dividing line is calibrated on past experience, and 'normality' for China is double-digit industrial expansion: then even an index of 49 or 48 (in fact the other of the two PMI-manufacturing indexes for China (48,7 in May) is compatible with a trend in industrial production even slightly below double digits.
Even in India they are worried about an economy that is not growing at all. But even in this case, one must look at the figures with a certain detachment: when one is used to growth at 8 or 10% it is easy to panic if growth slows down to 5 or 7%. To console themselves, in Asia both the Philippines and Indonesia are growing more than expected. And paradoxically, the Shanghai Stock Exchange rose and did not fall after the news on the PMI index because, in a show of optimism, the slowdown makes it more probable that support from Beijing, which has a well-stocked santabrbara to stimulate the economy.
http://www.bloomberg.com/news/2012-06-01/asian-stocks-oil-slump-on-china-manufacturing-dollar-advances.html
http://www.bloomberg.com/news/2012-06-01/china-manufacturing-grows-at-weakest-pace-since-december.html
