Asia Manufacturing Expands in January 2026

Asia's manufacturing sector expanded in January 2026, fueled by robust global demand and a rebound in export orders, according to private sector surveys released on February 2. The improvement, seen across major economies including Japan, South Korea and China, signals a recovery from recent slowdowns and offers reassurance to policymakers amid lingering trade uncertainties.

In Japan, factory activity returned to growth territory for the first time since mid-2025, with the S&P Global Manufacturing Purchasing Managers' Index rising to 51.5 from 50.0 in December. This marked the strongest reading since August 2022, driven by sharp increases in output and new orders, the fastest in nearly four years. Export orders also grew for the first time since early 2022, supported by demand from key markets such as the United States and Taiwan. Manufacturers reported stronger inflows across all major segments, particularly investment goods, leading to renewed hiring at the quickest pace in more than three years and a buildup in backlogs of work after a prolonged decline.

Annabel Fiddes, economics associate director at S&P Global Market Intelligence, noted that Japan's manufacturing industry...