Factory activity across Asia expanded in January, driven by strong global demand and a rise in export orders, according to a private sector survey released on Monday. This offers policymakers some reassurance that the immediate shock from U.S. tariff increases has passed.

The survey showed that manufacturing activity in Japan and South Korea reached multi-year highs as major markets like the United States maintained growth momentum, boosting the outlook for Asia’s export-driven economies.

One survey indicated that Chinese factory activity accelerated in January as export orders rebounded, contrasting with earlier official data that had shown weakness in factory activity.

The China Manufacturing Purchasing Managers’ Index (PMI) rose to 50.3 from 50.1 in December, breaking above the 50-point threshold that separates expansion from contraction, reaching its highest level since October.

This optimistic survey result may reflect the strong growth momentum of Chinese exports, offsetting weak domestic consumption and helping the world’s second-largest economy achieve 5.0% growth last year.

Japan’s PMI rose to 51.5 in January from 50.0 in December, the highest level since August 2022, driven by strong demand from key markets such as the United States and Taiwan.

“Japan’s manufacturing sector returned to growth in early 2026, with companies signaling the strongest increases in output and new orders in nearly four years,” said an economic associate director.

South Korea’s manufacturing PMI also rose to 51.2 in January from 50.1 in December, reaching its highest level since August 2024.

The International Monetary Fund (IMF) raised its global economic growth forecast for 2026 last month, citing easing concerns over the impact of U.S. tariffs and the ongoing boom in artificial intelligence investment, which continues to drive asset wealth and boost expectations for productivity gains.

The improved global demand outlook has driven factory activity expansion across Asia. Taiwan’s PMI rose to 51.7 in January from 50.9 in December, while Indonesia’s PMI increased from 51.2 to 52.6.

The survey also showed that factory activity in Malaysia, the Philippines, and Vietnam expanded in January.

Japan

Japan is an island nation in East Asia with a rich history dating back thousands of years, known for its blend of ancient traditions and modern innovation. Key cultural sites include ancient temples and shrines in Kyoto, the historic Hiroshima Peace Memorial, and the iconic Mount Fuji. Its history spans from the samurai era and feudal shogunates to rapid modernization during the Meiji Restoration and its role in World War II.

South Korea

South Korea, officially the Republic of Korea, is a vibrant East Asian nation with a history spanning thousands of years, from ancient kingdoms like Goguryeo and Joseon to Japanese colonization and the Korean War. Following the war, it rapidly transformed from a war-torn country into a global economic powerhouse, known for its advanced technology and cultural exports like K-pop. Today, South Korea blends its rich traditions, such as Buddhist temples and Confucian heritage, with modern innovation and dynamic cities like Seoul.

United States

The United States is a large, diverse country in North America, founded in 1776 after the Thirteen Colonies declared independence from Great Britain. Its history is marked by westward expansion, the Civil War over slavery, and its rise as a global economic and military power in the 20th century. Culturally, it is known for its melting pot of immigrant traditions, iconic landmarks like the Statue of Liberty, and influential contributions to music, film, and technology.

China

China is one of the world’s oldest continuous civilizations, with a recorded history spanning over 3,500 years. It was home to ancient dynasties such as the Shang, Zhou, and Han, and later became a unified empire under the Qin, which built the Great Wall. Today, China is known for its rich cultural heritage, including landmarks like the Forbidden City and the Terracotta Army, as well as modern global influence.

Taiwan

Taiwan is an island nation with a complex history, originally inhabited by indigenous peoples before being colonized by the Dutch and Spanish in the 17th century, and later ruled by the Qing dynasty. It became a Japanese colony from 1895 to 1945, after which it was governed by the Republic of China (ROC), which relocated there in 1949. Today, Taiwan is known for its vibrant democracy, high-tech economy, and rich cultural blend of Chinese and indigenous traditions.

International Monetary Fund (IMF)

The International Monetary Fund (IMF) is a global financial institution established in 1944 at the Bretton Woods Conference to promote international monetary cooperation and economic stability. It provides loans, policy advice, and technical assistance to member countries facing balance of payments crises, aiming to foster sustainable economic growth. Over its history, the IMF has played a key role in managing financial crises, such as the 1997 Asian financial crisis and the 2008 global recession, though it has also faced criticism for its loan conditions.

Indonesia

Indonesia is a Southeast Asian archipelago nation with over 17,000 islands, known for its rich cultural diversity and history as a major hub for trade, including spices, since ancient times. Its history includes the influence of Hindu-Buddhist kingdoms like Srivijaya and Majapahit, followed by centuries of Dutch colonization, and a declaration of independence in 1945. Today, Indonesia is the world’s largest Muslim-majority country, with iconic sites such as Borobudur temple and Bali’s terraced landscapes reflecting its layered heritage.

Malaysia

Malaysia is a Southeast Asian country known for its rich cultural diversity, blending Malay, Chinese, Indian, and indigenous influences. Its history includes ancient Malay kingdoms, colonial rule by the Portuguese, Dutch, and British, and eventual independence in 1957. Today, it is a modern nation famous for landmarks like the Petronas Twin Towers and the historic city of Malacca.