China slowdown, trade disputes with US weigh heavily on Asian economies

US-China tensions has hit the trade-reliant economy

The latest run of weaker Chinese economic data means "things have to get worse before they get better," according to economists at Bank of America Merrill Lynch.

The potential drag on the rest of the region, especially through the trade channel, will likely materialise soon, the economists led by Hong Kong-based Helen Qiao wrote in a report. Indeed, in small open economies export weakness has already curbed growth in domestic demand, especially in manufacturing, they wrote.

One example of that was on display in