The ThomsonReuters/ INSEAD Asia Business Sentiment Survey for the first time has shown positive outlook for the second quarter across economies. Of the 124 companies questioned, none gave a negative outlook for the first time. The index jumped to 74 from the 64 last quarter. Any figure over 50 is considered bullish.
Of the 10 economies surveyed, Only India and Philippines reported a 100% positive outlook. With India, a similar 100% positive outlook was last reported in the fourth quarter of 2012. The recent change in the political leadership of the country is the prime reason for this robust outlook. PM Narendra Modi lead BJP government is widely believed as business friendly.
Business sentiment in China improved from 50% to 67% for the second quarter. Nine of the fifteen participants expressed fears for global economic uncertainty. Few of them were concerned about rising costs too.
The Japanese index slipped marginally to 56% from 59%. 16 business identities were questioned of which 14 were neutral on the outlook while two were positive. South Korean index fell significantly from 67% to 50% due to concerns about global economy, rising costs and exchange rate discrepancies. Australian index stood at 79% from last quarter’s 64%.
Thailand index stood at 91%, Singapore and Malaysia at 67% each. The survey results did not included Indonesia.