Europe may be worried about the debt crisis unfolding in Ireland and other economies at its fringes, but companies in Asia are not. Sentiment among the region’s leading companies rebounded in the fourth quarter, according to the latest
Reuters Asia Corporate Sentiment Index.
The index rose to 77 points in the survey of 100 major enterprises conducted from November 24 to December 3, up from 69 points in the third quarter. It was second highest reading since Reuters began tracking business sentiment in June 2009.
The latest reading is well above the 50 mark that splits positive from negative outlook. According to Reuters, sentiment is especially strong in resources, finance and property, which are the sectors that have benefited from robust economic growth and strong cash inflows.
The corporates with the most cautious outlook are those in Japan, while China and Japan remain among the most positive. Sentiment in Australia and Southeast Asia was generally upbeat. “Strong growth within Asia [are] calming fears of a fresh global recession as Europe buttresses its decade-old common currency with emergency loans to Ireland,” Reuters said.
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