China's factory activity is set to cool further in May, according to a preliminary PMI survey released Monday, as companies cut back orders amid tighter monetary policy and high commodity prices.
The news helped send markets across Asia sharply lower as investors scrambled to gauge the impact of weakening Chinese factory orders and what that could be signaling about the health of the global recovery.
An early reading of China's manufacturing activity indicates that it slowed to a 10-month low in May, according to the results of the survey conducted by HSBC.