Manufacturing activity in Asia recorded an increase in January, supported by robust global demand that boosted export orders and eased, at least temporarily, concerns over higher U.S. tariffs.
The rebound was particularly evident in China, where industrial output accelerated amid a sharp recovery in foreign orders. This marked a contrast with an earlier indicator that had pointed to a slowdown in the manufacturing sector.
The global manufacturing PMI from RatingDog, compiled by S&P Global, rose to 50.3 in January from 50.1 in December. It thus moved more firmly above the 50 threshold that separates expansion from contraction, reaching its highest level since October.
The positive trend was also confirmed in Japan, where the S&P Global PMI climbed to 51.5 in January from 50.0 the previous month, its highest reading since August 2022, driven in particular by strong demand from the United States.
South Korea followed a similar path, with its PMI rising to 51.2 in January from 50.1 in December, marking its best level since August 2024.
Beyond these major economies, the recovery spread across a large part of the region. An expansion in manufacturing activity was observed in India, Indonesia, Malaysia, the Philippines, and Vietnam.
This improvement comes amid a more favorable global backdrop. In January, the International Monetary Fund raised its global growth forecast for 2026, supported by easing concerns over U.S. tariffs and the continued strong momentum in investment in artificial intelligence.
