Asia's Manufacturing Expands in June Fueled by AI Demand Amid Geopolitical Challenges
Asia's manufacturing sector, particularly in China, expanded in June driven by strong demand for AI-related products such as chips and computers. Official and private surveys showed factory activity growth, supported by robust exports and stockpiling ahead of tariffs. Despite this, challenges remain from geopolitical tensions like the Middle East conflict, supply shortages, and a domestic property slump. While exports and AI investments bolster growth, domestic demand and price pressures continue to pose risks to the region's economic outlook.