Technology
Asia factory activity expanded in August on AI hardware demand, even as Middle East war lifted costs
Private manufacturing surveys released on 1-2 September 2026 showed that China, Japan and South Korea all saw factory activity expand in August, with Japan's new-business growth running at the fastest pace since January 2018 on demand for semiconductors and AI-related products, and South Korea logging a ninth straight month of expansion. S&P Global Market Intelligence's David Owen called the rise in export demand 'an encouraging sign that firms are still benefiting from the current AI and semiconductor supercycle', even as Middle East-driven energy costs added to input pressure.