Japan and South Korea Report Better-Than-Expected Factory Output in February

Japan's industrial production rose 2.5%, while South Korea's output surged 7.0% year-on-year, signaling cautious recovery in both economies.

Japan's factory output increased by 2.5% in February 2025 compared to the previous month, slightly surpassing market expectations of a 2.3% rise.
South Korea's industrial production grew 1.0% month-on-month in February 2025, exceeding forecasts of a 0.8% increase, and jumped 7.0% year-on-year, far outpacing the 2.0% growth predicted by economists.
Japanese manufacturers project modest growth in factory output, with expectations for a 0.6% rise in March and a 0.1% increase in April 2025.
Retail sales in Japan rose 1.4% year-on-year in February 2025, falling below the 2.0% growth forecast, raising concerns about weaker domestic demand.
The data reflect ongoing recovery in both countries' key sectors, though challenges like inflation, shifting consumer behavior, and external demand risks remain significant.