Private sector surveys released on Monday showed that Asian factory activity expanded in January, boosted by strong global demand, with export orders also growing. This provided some relief to policymakers that the impact of U.S. tariff hikes had temporarily passed.
The surveys indicated that manufacturing activity in Japan and South Korea grew at multi-year highs, driven by sustained momentum in major markets such as the United States, bolstering the outlook for Asia’s export powerhouses.
One survey showed that Chinese factory activity accelerated in January as export orders rebounded, contrasting with earlier official data indicating weak factory activity.
The RatingDog China Manufacturing Purchasing Managers’ Index (PMI), compiled by S&P Global, rose to 50.3 in January from 50.1 in December, crossing the boom-or-bust threshold of 50 and reaching its highest level since October.
This optimistic survey result likely reflects strong growth momentum in Chinese exports, offsetting weak domestic consumption and helping the world’s second-largest economy achieve 5.0% growth last year.
Japan’s S&P PMI for January rose to 51.5 from 50.0 in December, the highest since August 2022, mainly due to strong demand from key markets such as the United States and Taiwan.
“Japan’s manufacturing sector returned to growth trajectory in early 2026, with companies signaling the strongest expansion in output and new orders in nearly four years,” said an economic associate director at S&P Global Market Intelligence.
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 U.S. tariff impacts and the ongoing artificial intelligence investment boom driving asset wealth growth and boosting expectations of productivity gains.
The improved global demand outlook spurred 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.
Surveys also showed that factory activity in Malaysia, the Philippines, and Vietnam expanded in January.
