Asian factory activity expands thanks to global AI boom
SPY•Factory activity expanded in South Korea, Japan and Taiwan in September, with demand for chips and AI-related goods supporting growth. South Korea’s PMI rose to 53.9, Taiwan’s to 56.7, and Japan’s eased to 54.1.
1. Growth across Asia
Private surveys showed manufacturing activity expanded in South Korea, Japan and Taiwan in September, supported by demand for chips and AI-related goods. China’s factory activity also expanded, while Indonesia and Vietnam grew and the Philippines and Malaysia contracted.
2. Country readings
South Korea’s PMI rose to 53.9 from 52.3 in August, its highest level since May and a 10th consecutive month above 50. Taiwan’s PMI increased to 56.7 from 54.7. Japan’s PMI eased to 54.1 from 54.9, its weakest expansion in six months, as output and new orders slowed.
3. Demand and costs
South Korea’s export demand grew at its fastest pace in 15-1/2 years, while Japan’s export orders rose for a ninth straight month. Japan’s survey also showed firms continued to raise selling prices at one of the sharpest rates since late 2022.
