Asia's factory activity feels fading glimmer of AI boom

Asian factory growth continued in October, but manufacturing surveys showed a slower pace in China, Japan, South Korea and Taiwan. Business Recorder reported that the easing comes as investors question whether strong demand for artificial intelligence and chips can continue to support the region’s export-led economies.

China’s RatingDog manufacturing PMI slipped to 52.0 from 52.1 in September, while Japan’s reading fell to 53.3 from 54.1 and South Korea’s to 51.3 from 53.9. Taiwan’s PMI decreased to 54.9 from 56.7; all four readings remained above the 50 level that separates expansion from contraction. Vietnam, Indonesia and Malaysia recorded faster growth. The IMF expects Asian growth to slow from 5.0% in 2025 to 4.8% in 2026 and 4.4% in 2027, citing risks including higher energy costs and a possible correction in the AI boom.