HSBC: AI hardware boom will continue to drive Asia's PMI

He wrote that, boosted by the growth of the Asian AI hardware supply chain, export data from major electronics suppliers South Korea and Vietnam may show robust performance. He stated, however, that due to the lagging effects of rising energy and commodity prices earlier this year, most regions in Asia still face upward inflation risks. He said that in India, while lower oil prices have improved growth prospects, the El Niño phenomenon now threatens food prices and the informal sector. He added that nevertheless, the latest preliminary PMI data indicates that India's manufacturing sector should remain resilient.