A private sector survey released on Monday showed that Asian factory activity expanded in January, boosted by strong global demand, with export orders also growing. This provides some relief to policymakers that the shock from US tariff increases has temporarily passed.

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

One survey showed that Chinese factory activity accelerated in January as export orders rebounded, contrasting with previously released official data showing weak factory activity.

The RatingDog China Manufacturing Purchasing Managers’ Index (PMI), compiled by S&P Global, rose from 50.1 in December to 50.3, breaking above the boom-bust line of 50, reaching its highest level since October.

This optimistic survey result may reflect 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 rose from 50.0 in December to 51.5 in January, reaching its highest level since August 2022, mainly driven by strong demand from major markets such as the United States and Taiwan.

“Japan’s manufacturing sector returned to growth in early 2026, with companies signaling the strongest expansion in output and new orders in nearly four years,” said Annabel Fiddes, an economic associate director at S&P Global Market Intelligence.

South Korea’s manufacturing PMI also rose from 50.1 in December to 51.2 in January, 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 US tariffs and the ongoing artificial intelligence investment boom that continues to boost asset wealth and raise expectations for productivity improvements.

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

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

RatingDog China Manufacturing Purchasing Managers’ Index (PMI)

The “RatingDog China Manufacturing Purchasing Managers’ Index (PMI)” is not a physical place or cultural site but an economic indicator that measures the health of China’s manufacturing sector based on monthly surveys of purchasing managers. Developed by private data firm RatingDog (formerly Caixin), it provides insights into business conditions such as output, new orders, and employment. Unlike the official government PMI, this index focuses more on small and medium-sized enterprises, offering an alternative perspective on China’s industrial activity.

S&P Global

S&P Global is a leading American financial information and analytics company headquartered in New York City. Its origins trace back to the 1860 publication of Henry Varnum Poor’s “History of Railroads and Canals,” evolving over decades to include the Standard Statistics Company and eventually forming the modern S&P Global. Today, it is best known for its credit ratings, stock market indices like the S&P 500, and essential financial data services.

S&P PMI (Japan)

The S&P PMI (Purchasing Managers’ Index) for Japan is a key economic indicator that measures the health of the country’s manufacturing and services sectors based on monthly surveys of private companies. Published by S&P Global, it has been closely tracked since its inception to provide timely insights into business conditions, output, and employment trends. This index has historically reflected Japan’s economic cycles, including periods of growth, recession, and recovery from events like the 2011 earthquake and the COVID-19 pandemic.

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. Its primary purposes include providing short-term financial assistance to member countries facing balance of payments crises, fostering global trade, and reducing poverty through policy advice and technical assistance. Headquartered in Washington, D.C., the IMF has evolved to address modern challenges such as debt sustainability and financial crises, with 190 member countries as of today.