Demand for AI-Related Technologies Strengthens Asia's Industrial Sector

Demand for artificial intelligence-related technologies is strengthening Asia's industrial sector. Increased demand for chips, data center equipment, and computer hardware has become the main driver of production growth in the region.

In June, manufacturing indicators improved in China, Japan, and South Korea. China's PMI index rose to 51.7 and remained in the growth zone. In Japan, the indicator reached 54.8, while new orders grew at the fastest pace in two years. South Korea also saw production growth, though the pace of growth was relatively slower compared to May due to reduced demand for exports.

Despite positive indicators, rising costs remain a problem in the region. The conflict in the Middle East is driving up energy prices, complicating the supply process, and lengthening transportation timelines. This creates additional expenses for companies and increases the risk of price increases in the future.

Source: Reuters