Offsetting War

• Factory activity in several Asian emerging economies, including the Philippines, Malaysia, Taiwan, and Vietnam, expanded or remained steady in June. • Specific data shows the Philippines' activity index held at 50.9, while Malaysia's rose to 50.7 from 49.9 in May. • This growth is driven by a global surge in AI demand, which is helping export-reliant economies offset economic pain caused by ongoing wars.

• Asia's manufacturing sector experienced a boost in June driven by the global AI boom, which increased demand for technology-related goods. • This growth helped offset economic drags caused by the Iran war, providing critical relief for the region's export-dependent economies. • Key indicators showed expansion across emerging markets, with Malaysia's index rising to 50.7 from 49.9 and the Philippines holding steady at 50.9.