This reflects a protracted period of weak external demand with consequent strongly negative effects on exports and increasing uncertainty about high-growth emerging countries.

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Weak external and domestic demand has weighed on Chinese manufacturers.

BBC: China manufacturing activity shrinks again in September

"The biggest reason for the decline in gross domestic product (GDP) is external demand was weak and domestic demand did not recover as quickly as we thought, " said Shuji Tonouchi of Mitsubishi UFJ Morgan Stanley Securities in Tokyo.

BBC: Japanese economy contracts for third straight quarter

"The trade data (shows) that external demand still remains weak, which is widely-known to the market, so I think investors will pay more attention to indicators that reflect companies' business operations, profitability and revenue growth, such as industrial production and power consumption, before they make up their mind, " said Dongxing Securities analyst Sun Zheng.

WSJ: Nikkei Outperforms, Shanghai Treads Water

"New export orders contracted after a temporary rebound in March, suggesting external demand for China's exporters remains weak, " said Qu Hongbin, China chief economist at HSBC in a statement.

BBC: China manufacturing activity growth slows in April