Middle East conflict drives April stockpiling and Asian output gains
The ongoing Middle East conflict that kicked off in February 2026 is making waves in Asia's manufacturing world.
April reports show production went up in Taiwan, Japan, and South Korea, partly because companies rushed to stockpile supplies, worried about supply chain hiccups and rising costs.
Input prices surge, emerging markets struggle
Thanks to the conflict, energy and other commodity prices have jumped across Asia.
Manufacturers are feeling the pinch: Taiwan saw its expenses rise at one of the fastest rates since the PMI survey began 22 years ago, South Korea hit a new record, and input prices soared in Japan, Indonesia, and Vietnam.
The pressure is toughest on emerging markets: Indonesia's output shrank, Vietnam got its first drop in new orders since last summer, and India's factory growth stayed sluggish.
Experts warn that unless things stabilize soon, these challenges could stick around after the stockpiles run out.