Asia's
factory activity expanded steadily in May on stockpiling by some companies to
get ahead of supply shocks from the Middle East conflict. Surveys done showed
that the war in the Middle East was straining global energy supplies and
hitting vulnerable economies hardest.
Factory activity expanded in most Asian economies. China's private sector gauge grew for a sixth straight month and South Korea's hit the fastest pace in five years, highlighting a region-wide push to build buffers against potential conflict-led disruptions.
Japan's
factory activity also expanded with the PMI at 54.5 in May, slowing from
April's more than four-year high of 55.1, though firms there reported the
sharpest rise in input costs since September 2022 due to higher raw material
prices driven by the Middle East war.
Source: https://en.wikipedia.org
South Korea's PMI rose to its highest since March 2021 at 54.8 in May, up from 53.6 in April, again underlining firms' drive to lock in supplies as shipping disruptions tied to the Iran war jolt global trade.
The U.S.-Israeli war on Iran, which began late in February, has upended trade, rattled financial markets and raised concerns over global energy supplies, particularly through the Strait of Hormuz, a key route for oil and gas shipments.
In Vietnam, the factory PMI gauge rose to 52.8 from 50.5 in April, while that for Taiwan rose to 56.1 from 55.3, the surveys showed. The index for the Philippines also rose to 50.8 from 48.3 in April.
The uncertainties in the world cause many to stock-up but this itself is a cost which will be borne by the consumer eventually. The sooner there is peace, we have a more sane world. But, alas, America is bent on war and tariffs which is just self-destruction! On its 250th anniversary (of independence), there is little cause to celebrate with a president who only sees everything in transactional terms and focused on him.
Reference:
Asia's factory output expands as firms stockpile buffers over Iran war
risks, The
Star,
1 Jun 2026
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