{"id":63972,"date":"2026-06-29T23:38:21","date_gmt":"2026-06-30T03:38:21","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/asia-markets-update-china-manufacturing-rebounds-as-regional-headwinds-persist\/63972\/"},"modified":"2026-06-29T23:38:21","modified_gmt":"2026-06-30T03:38:21","slug":"asia-markets-update-china-manufacturing-rebounds-as-regional-headwinds-persist","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/asia-markets-update-china-manufacturing-rebounds-as-regional-headwinds-persist\/63972\/","title":{"rendered":"Asia Markets Update: China Manufacturing Rebounds as Regional Headwinds Persist"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>China\u2019s manufacturing sector returned to expansion in June<\/strong>, with the official PMI rising to <strong>50.3<\/strong>, signaling a recovery driven by high-tech exports.<\/li>\n<li><strong>Indonesian equities plummeted 3.1%<\/strong> to a multi-week low of <strong>5,638.574<\/strong>, as the market continues to reel from MSCI&#39;s index freeze and potential downgrade risks.<\/li>\n<li><strong>A massive fire at Indian Oil\u2019s Haldia refinery<\/strong> injured at least <strong>15 workers<\/strong> early Tuesday, potentially disrupting local fuel supply chains.<\/li>\n<li><strong>High-tech manufacturing remains a bright spot<\/strong> for the Chinese economy, with the sector&#39;s PMI hitting <strong>53.5<\/strong> amid a global surge in AI-related demand.<\/li>\n<li><strong>Foreign capital outflows<\/strong> continue to pressure Southeast Asian assets, with Indonesian markets facing a &quot;moment of truth&quot; regarding their emerging market status.<\/li>\n<\/ul>\n<h2>China\u2019s Factory Activity Rebounds on Export Strength<\/h2>\n<p>China\u2019s manufacturing sector showed signs of resilience in June, as the official <strong>Purchasing Managers&#39; Index (PMI)<\/strong> rose to <strong>50.3<\/strong> from <strong>50.0<\/strong> in May. This performance exceeded analyst expectations of <strong>50.1<\/strong>, marking a critical return to expansion territory. The recovery was largely underpinned by a <strong>1.3 percentage point jump<\/strong> in the new orders sub-index, which reached <strong>51.2<\/strong>.<\/p>\n<p>The growth is increasingly bifurcated, with <strong>high-tech manufacturing<\/strong> leading the charge at a PMI of <strong>53.5<\/strong>. <em>Analysts suggest that the global artificial intelligence boom is providing a necessary cushion for Chinese exporters<\/em>, helping to offset sluggish domestic consumption and a prolonged property market downturn. However, non-manufacturing activity remained relatively flat, edging up only slightly to <strong>50.2<\/strong>.<\/p>\n<h2>Indonesia Equities Hit Weakest Level Since Early June<\/h2>\n<p>The Indonesian benchmark index, the <strong>IDX Composite (<a href=\"\/stock\/JKSE\">JKSE<\/a>)<\/strong>, suffered a sharp <strong>3.1% decline<\/strong> on Tuesday, falling to <strong>5,638.574<\/strong>. This marks the index&#39;s weakest performance since June 9, as investors react to ongoing uncertainty regarding the country&#39;s classification by <strong>MSCI Inc.<\/strong> The index provider recently extended its review of Indonesia&#39;s status until November, maintaining a &quot;freeze&quot; that blocks fresh structural capital.<\/p>\n<p>Market sentiment has been further dampened by a weakening <strong>Rupiah<\/strong>, which has faced pressure from a widening budget deficit and high global <a href=\"https:\/\/stockmarketwatch.com\/energy\/crude-oil\" data-internallinksmanager029f6b8e52c=\"12\" title=\"Crude oil\">oil prices<\/a>. <em>Foreign investors remain on the sidelines<\/em>, with some analysts warning that a potential downgrade to &quot;frontier market&quot; status could trigger up to <strong>$13 billion in outflows<\/strong>. The financial and infrastructure sectors were among the hardest hit during the Tuesday session.<\/p>\n<h2>Massive Blaze Hits Indian Oil\u2019s Haldia Refinery<\/h2>\n<p>A major fire broke out at the <strong>Haldia Refinery<\/strong>, operated by Indian Oil Corporation (<a href=\"\/stock\/IOC\">IOC<\/a>), in West Bengal early Tuesday morning. The blaze reportedly originated in a <strong>naphtha-carrying pipeline<\/strong> between 4:00 AM and 5:00 AM local time. Local media reports indicate that at least <strong>15 workers sustained injuries<\/strong>, with several in critical condition due to severe burns.<\/p>\n<p>The cause of the fire remains unclear, and <strong>Indian Oil Corporation<\/strong> has not yet released an official statement regarding the impact on production capacity. The Haldia facility is a vital hub for fuel production in Eastern India, with an installed capacity of <strong>2.5 million metric tons per annum (MMTPA)<\/strong>. <em>Market participants are closely monitoring the situation for potential spikes in regional fuel prices<\/em> should the refinery face a prolonged shutdown.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways China\u2019s manufacturing sector returned to expansion in June, with the official PMI rising to 50.3, signaling a recovery [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50383,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center 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