Asia Intelligence Brief — Monday, June 1, 2026

China’s official manufacturing PMI eased to 50.0 in May right at the expansion-contraction threshold, while non-manufacturing rose to 50.1 and composite PMI to 50.5 — divergence among sectors with high-tech manufacturing leading at 52.9.

Korea’s Kospi jumped 3.68% to a fresh record of 8,788.38 as Samsung Electronics surged more than 10% to an all-time high after the company began shipping HBM4E memory-chip samples globally.

India’s manufacturing PMI rose to a three-month high of 55.0 with input-cost inflation among the strongest in four years. Japan’s Nikkei 225 added 0.91% to 66,934.33 holding records; the RatingDog Caixin China May PMI eased to 51.8 from a five-year high of 52.2.

Today’s Asia Intelligence Brief covers the region’s finance, markets, economy, and politics — compiled across Japanese, Chinese, Korean, Hindi, Bahasa Indonesia, Vietnamese, and English sources.

China — PMI at the Threshold

Official NBS Manufacturing PMI Eases to 50.0 from 50.3

China’s official manufacturing PMI stood at 50.0 in May, down 0.3 percentage points from April and right at the expansion-contraction threshold, the National Bureau of Statistics reported Sunday. The reading came in line with the market consensus of 50.0.

The production sub-index came in at 51.2, while the new orders index slipped to 49.9 — into contraction. The composition signals sustained output expansion alongside softening market demand.

Non-Manufacturing Back to Expansion at 50.1, Composite at 50.5

The non-manufacturing PMI improved to 50.1 in May from 49.4 in April, back into expansion territory and above the 49.5 market forecast. The composite PMI stood at 50.5, up 0.4 points from April and above the 50 expansion threshold.

Huo Lihui, chief statistician at NBS, noted that new growth drivers continued to improve in May, with high-tech manufacturing PMI at 52.9 (up 0.7 points) and equipment manufacturing at 52.1 (up 0.3 points). Railway transportation, insurance, telecommunications, broadcasting and satellite-transmission services posted PMI readings above 55.

China — Caixin PMI Eases

RatingDog Caixin Manufacturing PMI at 51.8 from 5-Year High

The RatingDog (Caixin) China General Manufacturing PMI eased to 51.8 in May from an over five-year high of 52.2 in April, above the 51.4 forecast. Growth for new orders and output moderated but stayed robust on domestic demand, new customers, and product upgrades; export orders dipped slightly.

Employment edged into marginal contraction and supplier delivery times lengthened for a third consecutive month, albeit modestly. Production rose strongly among the highest readings since late 2024.

Inflationary Pressures Ease for First Time in Six Months

Input and output price increases slowed for the first time in six and seven months respectively, though costs remained elevated due to raw materials, energy, and supply disruptions. Business confidence stayed positive but softened on expectations of stronger demand, new orders, and capacity expansion.

The Caixin survey’s six-month rising-input-stocks streak continued, signalling cautious-but-positive corporate inventory positioning. The combination of NBS and Caixin readings frames China’s manufacturing economy at the threshold of expansion.

Korea — Kospi Record on Samsung Surge

Kospi Jumps 3.68% to Fresh Record 8,788.38

South Korea’s Kospi closed up 3.68% at 8,788.38 today, hitting a fresh record high. The small-cap Kosdaq fell 2.3% to 1,050.03, signalling a clear large-cap-led rally.

Samsung Electronics surged more than 10% to an all-time high after the company began shipping samples of its latest high-bandwidth memory (HBM4E) chip to customers globally. The move reasserts Korean memory leadership in the AI-capex demand cycle.

BoK 2026 GDP Forecast Raised to 2.0% from 1.8%

The Bank of Korea raised its 2026 GDP growth forecast to 2.0% from 1.8% on the semiconductor industry’s continued strength, the central bank confirmed in late May. The upgrade offsets the negative impact of US tariff measures, BoK noted.

The new projection lifts Korea above 2% for the first time in two years. SK Hynix, the second Korean memory leader, traded firm in sympathy with the Samsung HBM4E launch.

India — PMI at 3-Month High

Manufacturing PMI Rises to 55.0 in May from 54.7

India’s HSBC Manufacturing PMI rose to 55.0 in May from 54.7 in April, marking a three-month high. The final reading came in higher than the 54.3 flash estimate released last month.

Capital goods topped the sectoral ranking for input cost inflation, followed by intermediate and consumer goods. New order growth was driven by domestic demand as export order growth moderated.

Input Costs Strongest in 4 Years, Margin Pressure Builds

Input cost inflation remained among the strongest seen in the past four years, driven by higher energy, fuel, material, and transportation costs amid the ongoing West Asia conflict. Output price inflation eased — suggesting pressure on manufacturers’ margins.

Firms increased raw-material purchases at the fastest pace in three months and built contingency inventories; stocks of finished goods rose for a second consecutive month at the fastest pace in more than a decade. Only 8% of companies signalled pass-through of cost increases to customers, with others restrained by competitive pressures.

Japan — Records Hold

Nikkei 225 +0.91% to 66,934.33; Topix at Records

Japan’s Nikkei 225 rose 0.91% to close at 66,934.33 today. The Topix added a modest gain to a new record of 3,957.17 last week, with the index complex holding records.

The records hold despite Tokyo May CPI cooling to 1.4% headline and 1.3% core released Friday — well below the BoJ’s 2% target for the third straight month. The disconnect between record equity tape and below-target inflation is the BoJ patience paradox in operation.

Samsung HBM4E Lifts Asian AI Complex

The Samsung HBM4E chip sampling story is a positive cross-Asia signal: Japanese semiconductor-equipment makers benefit from the memory-capex acceleration, with stocks tracking the Korean move. The AI-electronics thesis confirmed by China’s high-tech PMI at 52.9 anchors the broader Asia narrative.

The yen held in the 159 range against the dollar following Friday’s Tokyo CPI cooling. BoJ Deputy Governor Himino last week said the timing of a rate hike continues to be assessed as the central bank monitors Middle East developments.

Indonesia, Vietnam, ASEAN

Rupiah and JCI Recover Modestly

The Indonesian rupiah recovered modestly from Friday’s IDR 17,789 record low against the dollar; the JCI rebounded from the -8.35% weekly drubbing earlier in May. Bank Indonesia held its policy rate at 4.75% in May, balancing rupiah defence and growth support.

Vietnam’s manufacturing PMI continues to benefit from the semiconductor-supply-chain export uplift on China AI demand spillover. The Philippines and Thailand remain in patience-mode with their respective central banks.

What to Watch

• Today · China NBS + Caixin May manufacturing PMI (released); India PMI (released)
• Today · Kospi record 8,788 on Samsung HBM4E launch; Nikkei 66,934
• Tue Jun 2 · Korea May CPI release
• Tue Jun 2 · Indonesia May CPI release
• Jun 17 · BoJ next monetary policy meeting; rate-hike pricing pushed out
• Ongoing · US-Iran 60-day ceasefire memorandum status
• Ongoing · China high-tech PMI 52.9 vs new orders 49.9 K-shape divergence
• Ongoing · Samsung HBM4E ramp to global customers