A gauge of activity in Japan stayed contractionary for a ninth month and the reading for South Korea remained below the 50 boom-or-bust threshold, according to the S&P purchasing managers’ indexes.

Taiwan slipped below the 50-mark for the first time in a year, while in Thailand the gauge retreated after registering a slight expansion in the prior month. Vietnam moved into expansion for the first time since November.

In South Korea, a bellwether for global trade given its contributions to global supply chains and diversity of exports, domestic orders fell even as international sales increased at the fastest clip since January 2024, led by the US and Asia Pacific region.

Some of that demand likely reflected an attempt to procure products before new tariffs take effect.

Signs of trade upheaval abound. In South Korea, factory owners noted rising raw material prices.

Managers across the region, including in Japan, voiced concern about future demand conditions given geopolitical risks.

In Taiwan, a major chip producer, new orders expanded at the softest pace in a year, with firms citing weaker than expected domestic and foreign demand across Europe, Japan and the US.

Trump’s plans for so-called reciprocal tariffs come after he’s already targeted specific industries including steel and autos.

Even in Vietnam, where overall factory activity improved, new export orders plummeted at the fastest pace since July 2023, falling for the fifth month in a row.

The regional data follow purchasing managers’ index (PMI) figures for China yesterday showing an improvement in the country’s industrial sector that exceeded economists’ estimates.

PMI figures for India, Indonesia, Malaysia, the Philippines and Singapore are scheduled to be reported tomorrow.