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Asia Business Sentiment Index falls to 62 from 66 in fourth quarter
REGIONAL rising costs and global uncertainty prompted a greater loss of confidence among 100 major Asian corporations in the fourth quarter, according to a Thomson Reuters/INSEAD poll.
The Asia Business Sentiment Index fell to 62 in the fourth quarter from 66 in the third quarter of 2013, the lowest reading since the third quarter of 2012. A reading above 50 indicates an overall positive outlook.
Political strife in Thailand caused local sentiment to fall to 40 from 71 in the third quarter, and to 58 in the Philippines in the wake of the typhoon, plunging confidence to its lowest level since the survey began in 2009.
Among ASEAN countries, Malaysia was the most cheerful in the fourth quarter at 75, up from 69 in the previous quarter. Japan scored 55, down from 63 in the previous quarter.
China's reading stood at 75 and India's hit 82 with South Korea and Singapore showed weaker readings.
Said Daewoo Securities China analyst Cui Hongmei: "The companies appear to be upbeat on the expectation that overseas demand for Chinese exports will improve."
Said Shangahi's Southwest Securities economist Zhang Shiyuan: "There's still too much debt. It's a time bomb that may be detonated if monetary and fiscal policies don't coordinate well."
Auto sector sentiment was the lowest at 33, a fall from 63 in the third quarter, followed by the food sector coming in at 50, which complained about rising costs. Builders were the most bullish with a maximum reading of 100 for the second consecutive quarter, followed by pharmaceuticals and property sectors with scores of 75.
The poll, taken from December 2-13 was conducted by ThomsonReuters in association with INSEAD, a global management and business school in Fontainebleu, south of Paris.
The Asia Business Sentiment Index fell to 62 in the fourth quarter from 66 in the third quarter of 2013, the lowest reading since the third quarter of 2012. A reading above 50 indicates an overall positive outlook.
Political strife in Thailand caused local sentiment to fall to 40 from 71 in the third quarter, and to 58 in the Philippines in the wake of the typhoon, plunging confidence to its lowest level since the survey began in 2009.
Among ASEAN countries, Malaysia was the most cheerful in the fourth quarter at 75, up from 69 in the previous quarter. Japan scored 55, down from 63 in the previous quarter.
China's reading stood at 75 and India's hit 82 with South Korea and Singapore showed weaker readings.
Said Daewoo Securities China analyst Cui Hongmei: "The companies appear to be upbeat on the expectation that overseas demand for Chinese exports will improve."
Said Shangahi's Southwest Securities economist Zhang Shiyuan: "There's still too much debt. It's a time bomb that may be detonated if monetary and fiscal policies don't coordinate well."
Auto sector sentiment was the lowest at 33, a fall from 63 in the third quarter, followed by the food sector coming in at 50, which complained about rising costs. Builders were the most bullish with a maximum reading of 100 for the second consecutive quarter, followed by pharmaceuticals and property sectors with scores of 75.
The poll, taken from December 2-13 was conducted by ThomsonReuters in association with INSEAD, a global management and business school in Fontainebleu, south of Paris.
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