Asian business sentiment hits seven-year high - Thomson Reuters/INSEAD survey

According to the latest Thomson Reuters/INSEAD survey, business morale among the Asian companies boosted in the first quarter to a seven-year high, as better prospects of Chinese economic growth negated concerns about rising trade tensions.

Key Findings:

“The Thomson Reuters/INSEAD Asian Business Sentiment Index, representing the six-month outlook of 67 firms, advanced one notch to 79 for the January-March quarter compared with three months before.

A reading above 50 indicates a positive outlook.

Thailand, the Philippines and Malaysia saw robust jumps in sentiment, showing that many countries in Asia continue to benefit from accelerating global growth.

In particular, China has seen exports soar, up 45 percent in February to mark their fastest growth in three years.

The sub-index for Thailand surged to 100 from 85 and the Philippines saw a climb to 83 from 70 while sentiment in Malaysia improved five notches to 75.

Australia’s sub-index dropped to 80 from 92, although the figure is relatively high when compared with its historical average of 69.

South Korea’s sub-index plunged to 50 from 83.

Singapore’s sub-index declined to 75 from 79. The country’s exports took a surprise dip in February as tech product shipments continued to retreat from the hot pace of recent months.

Japan, where consumer spending numbers have been subdued, recorded its lowest reading in a year, at 67 compared to the fourth quarter's 70. India also experienced a decline in sentiment, falling to 72 from 79.

The index for sentiment in China increased to 88 from 83, but the number of respondents was low at four companies.”