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STORY: Asian factories are getting busier, but economic headwinds continue to blow strong.

That was the reading from closely watched purchasing managers’ index numbers on Monday.

The figure for Chinese manufacturers rose to 50.4 in August - going above the 50-point mark that indicates expanding activity.

That number mostly covers smaller, export-oriented firms, and was more optimistic than official PMI numbers released over the weekend.

Chipmakers are among the sectors doing well, amid robust demand for products to fuel AI.

Economists say that showed up in figures for countries with major semiconductor sectors.

South Korea’s PMI number rose to 51.9.

Japan saw gains too, rising to 49.8 - still in contractionary territory, but only just.

It was helped by a strong rebound in car output after a safety scandal forced plant shutdowns the month before.

Still, worries remain, including fears that U.S. demand - a key factor for Asian exporters - is set to slow.

There’s concern too over the uncertain outcome of the U.S. presidential election, and what might follow.

Still, the International Monetary Fund remains optimistic about Asia.

It predicts moderating inflation will allow the region’s central banks to cut rates to support growth.