A further decline in new orders and output signaled weakness in overall demand despite factories again cutting their prices, leading firms to reduce their workforces for a fourth month in a row
At the start of the week, the market will also take cues from July auto sales numbers which signal a recovery in the sector hit hard by Covid-19
Here are the top headlines of the day
While the Nikkei Manufacturing Purchasing Managers' Index increased to 47.2 last month from 30.8 in May it was still below the 50-mark separating growth from contraction
Agriculture was expected to be the only silver lining in the economy in the current financial year
A nationwide lockdown in April, coupled with a crash in export orders, had led to conditions across sectors falling by the biggest margin ever.
A series of manufacturing surveys released on Monday suggest any rebound in businesses will be some time off, even though China's factory activity unexpectedly returned to growth in May
Asia's third-largest economy will contract this quarter for the first time since the mid-1990s
The PMI for South Korea, Asia's fourth-largest economy and a global manufacturing powerhouse, skidded to 41.6 in April, the lowest reading since January 2009
PMI manufacturing plunged to 27.4 last month from March's 51.8, by far its lowest since the survey began in March 2005
The Nikkei India Manufacturing Purchasing Managers' Index (PMI) stood at 51.8 in March, after February's 54.5 - much below the eight-year high of 55.3 in January.
Exports zoom but job growth at 3-month low
The Nikkei Manufacturing Purchasing Managers' Index, compiled by IHS Markit, fell to 54.5 last month from January's 55.3
The IHS Markit India Manufacturing PMI rose from 52.7 in December to 55.3 in January, its highest level in just under eight years
In response to the jump in sales, factories hired new workers at the fastest rate in more than seven years
But weak market conditions keep firms spooked and business optimism low
Solid growth in demand was despite output prices rising at the fastest rate in nearly three years
The dominant sector of the economy had suffered two straight-months of contraction since September
The downturn in overall business activity and demand suggests the Reserve Bank of India might need to ease policy again, a survey showed
On the prices front, input cost inflation moderated to one of the lowest rates seen in over a decade