China’s factory activity contracted at a slower rate in May after a reprieve in the tariff war with the US unclogged trade flows, even as weak domestic demand continues to weigh on the economy. The official manufacturing purchasing managers’ index was 49.

Official PMI remains below 50, with ‘persistently high uncertainty’ in global trade tipped to weigh on growth outlook in both US and China.

China's manufacturing activity shrank in May for the second month running, official data showed Saturday, despite Beijing reaching a temporary ceasefi.