TOKYO, Feb 2 — The continent's factory activity expanded in January as solid global demand lifted export orders, private-sector surveys showed on Monday, offering policymakers some assurance that the hit from higher United States (US) tariffs has run its course for now.
Japan and South Korea saw manufacturing activity grow at a multi-year pace as big markets like the US sustained momentum, the surveys showed, brightening prospects for Asia's export powerhouses.
China's factory activity expanded at a faster pace in January as export orders rebounded, according to one survey, a contrast with an earlier official report showing activity faltering.
"Exports from most countries have surged in recent months, and we think the near-term outlook for Asia's export-oriented manufacturing sectors remains favourable," said Capital Economics' Asia economist Shivaan Tandon.
The RatingDog China General Manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, rose to 50.3 from 50.1 in December, exceeding the 50 mark that separates growth from contraction and reaching the highest level since October.
The upbeat survey likely reflects China's export drive, which offset weak domestic consumption and helped the world's second-largest economy expand by 5.0 per cent last year.
Japan's S&P PMI rose to 51.5 in January from 50.0 in December, the strongest level since August 2022, driven by robust demand from key markets like the US and Taiwan.
"Japan's manufacturing industry propelled itself back into growth territory at the start of 2026, with firms signalling the strongest upturns in output and new orders for nearly four years," said S&P Global Market Intelligence economics associate director Annabel Fiddes.
South Korea's PMI also rose to 51.2 in January, up from 50.1 in December, marking the highest reading since August 2024.
The International Monetary Fund raised its 2026 global growth forecast last month amid receding fears of the impact of US tariffs and a continued AI investment boom that has fueled asset wealth and expectations of productivity gains.
Brightening prospects for global demand have helped factory activity expand across Asia. Taiwan's PMI rose to 51.7 in January from 50.9 in December, while Indonesia's rose to 52.6 from 51.2.
Factory activity in Malaysia, the Philippines, and Vietnam also expanded in January, according to the surveys.
India's manufacturing activity inched up in January as demand improved slightly, though the gain was not strong enough to lift business optimism or meaningfully increase hiring.
