Asian Factory Activity Gauges Signal Growth But Cost Pressures Cloud Recovery -- Update

Asian manufacturing shows signs of growth, with improved activity reported in Taiwan and South Korea, according to S&P Global's PMI data. Taiwan's PMI rose to 50.9, marking its first expansion in 10 months, while South Korea's PMI reached 50.1. However, rising input costs and material shortages pose challenges. Economists emphasize the need for sustained demand and supply chain resilience to maintain growth. Despite inflation concerns, firms are increasing prices to protect margins. Overall, Asia's export-oriented sectors remain favorable, driven by improving global demand, particularly for AI-related hardware.