East Asia Econ

East Asia Today

Before the Iran war, Taiwan's industrial sector was strongest, and leading indicators pointed to further acceleration. But in terms of broad recovery, prospects in Japan looked best, with industrial sentiment rising, but consumer confidence rebounding too.

Paul Cavey

Mar 5, 2026 • 2 min read

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East Asia Today

While the big news is the bloodbath in markets, particularly Korea, there were lots of data releases today. They show that before the Iran war, economic momentum was good in Japan and Taiwan, and poor in Korea. In China, it could be either, depending on which PMI you believe.

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China – PMIs diverging more than usual

The S&P/RatingDog PMIs suggest an economy that is finally recovering. The official PMIs, by contrast, indicate continued sluggishness. I am inclined to think there is no change, at least until the LNY impact fades. The one common theme is firmer input prices, even before an energy price shock.

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East Asia Today

Lots of charts on Japan, on profits, capex, and unemployment. Also, highlights from today's PMI for Korea. That is solid, but not as strong as in Japan and Taiwan. Like Taiwan, however, the Korean PMI points to rising price pressures – and that even before a new oil price shock.