Europe's outlook dims as Asia's factories get busier

(Reuters) - An eighth straight month of contraction in the euro zone's manufacturing sector eclipsed brighter news from Asia on Monday, dimming chances of a strong rebound in the global economy.

The downturn in Europe's periphery members has spread to the core countries of Germany and France, according to purchasing managers' indexes (PMIs) for March. The outlook is grim as new orders fell across the region for the tenth month.

But while still far from robust, factory activity strengthened in China, South Korea and Taiwan, three of the Asia's leading exporters, as both export and domestic demand firmed.

"We are probably through the weakest for the global backdrop in terms of the major economies already, but they are now coming out at different paces," said Jeavon Lolay, head of global research at Lloyds Banking Group.

"Asia is going to lead the global economy with the United States not too far behind, leading the developed economies, but Europe will be the laggard.". Read More