Asian business sentiment edges up to 7-year high: Survey

SYDNEY: Business confidence among Asian companies rose in the first quarter to the highest level in seven years, a Thomson Reuters/Insead survey showed, as a fresh surge by the Chinese economy offset concerns about rising trade barriers.

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.

“The improvement is not dramatic but with a historical perspective this is a good reading,” said Antonio Fatas, a Singaporebased economics professor at global business school Insead.

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% in February to mark their fastest growth in three years.

“China ... has escaped the fear of a crisis that started back in 2016 and that’s why you see strong confidence.

“Imbalances persist but there is no real threat of a crisis over the short term,” said Fatas.

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. – Reuters