Japan, Taiwan Lead Asian Manufacturing Surge as AI Demand Fuels Robust Growth

Purchasing managers index data from S&P Global indicated a rise in factory activity in countries like Japan and Taiwan. Taiwan's manufacturing output saw its steepest expansion in over four-and-a-half years in February, driven by new business bookings and strong demand for semiconductors and AI-related technology.

Japan's factory activity also surged, reaching a 45-month high, with firms expressing increased optimism about the year ahead due to expected global demand in technology and auto sectors. India, the Philippines, Indonesia, and Thailand also reported upturns, with Indonesia's PMI hitting a near two-year high.

The positive export performance is largely attributed to the region's role in the AI boom, with tech-led export cycles expected to remain strong.