BUSINESS & DECISION Optimism was least apparent in China, where the government expects growth to slow this year from last. The world's second-largest economy garnered a score only slightly above 50, the point separating optimists and pessimists.
The Thomson Reuters/INSEAD Asian Business Sentiment Index <.TRIABS>
AUSTRALIA: LITTLE CHANGE KEEPS INDEX AT 71 IN Q2 VS 70 IN Q1
Sentiment at Australian firms in the second quarter almost matched the first. Of 12 respondents, five expressed positive outlooks for the next six months and the rest were neutral. The majority also said employment levels changed little over the past three months, as had sales. Chief among risks cited was domestic and global economic uncertainty.
CHINA: LACKLUSTRE GROWTH EVIDENT AT 55 IN Q2 VS 54 IN Q1
Just one of 11 Chinese respondents reported a bright outlook, while the remainder were neutral. Similarly, only one firm took on staff over the past three months, though 40 percent saw sales increase.
During the second quarter, government data showed factory output steadying but investment growing at its slowest rate in nearly 15 years.
Nevertheless, uncertainty surrounding the global economy was cited as the biggest risk to business outlooks, followed by rising costs.
INDIA: COOLING EUPHORIA PUTS INDEX AT 84 IN Q2 VS 97 IN Q1
Optimism was buoyant in India, though the country failed to top the sentiment table for the first time in over a year.
Last year's election of pro-business prime minister Narendra Modi was met with euphoria, but the slow implementation of economic reform, rising non-performing assets and slowing credit growth has tempered sentiment.
Of 19 respondents, 13 reported a positive outlook compared with six neutral, with 15 booking increased sales and seven adding staff.
High interest rates and regulatory uncertainty featured alongside global economic uncertainty as risks.
JAPAN: DOWN FROM NEAR 5-YEAR HIGH AT 60 IN Q2 VS 64 IN Q1
Japan's economy expanded in the first quarter at the fastest pace in a year, emerging from a sales tax hike-induced recession, yet corporate sentiment still fell from the first quarter, which was at its highest since the second quarter of 2010.
Of 15 respondents, 12 had neutral outlooks whereas three were positive, with more firms reporting increased employment levels than in the previous quarter.
Global economic uncertainty was flagged as a primary concern, with rising costs also weighing on sentiment.
SOUTH KOREA: MERS WOES KEEPS MOOD AT 69 IN Q2 VS 68 IN Q1
Confidence was little changed in South Korea, a country facing a decline in consumer spending following an outbreak of Middle East Respiratory Syndrome.
Five of 13 respondents said their business outlooks were positive while the rest were neutral, with most concerns related to global economic conditions. Eight firms booked increased sales versus nine in the previous quarter.
TAIWAN: GROWTH SLOWDOWN REFLECTED IN 63 IN Q2 VS 67 IN Q1
A dip in sentiment in Taiwan reflected expectations for a slowdown in overall demand impeding growth of an export-reliant economy.
One company each reported a rise and fall in employment levels, while staffing was unchanged at six. Two firms reported falling sales, whereas the majority reported no change. Most respondents said global economic uncertainty was their main risk.
SOUTHEAST ASIA: THAILAND 94 VS 79, PHILIPPINES 78 VS 75, INDONESIA 75 VS 75, MALAYSIA 71 VS 64, SINGAPORE 59 VS 50
The most optimistic businesses were in Thailand - where a military government is restructuring state-controlled firms - as interest rate cuts in March and April along with a weakening baht boosted hopes for increased exports.
Seven of eight respondents reported a positive outlook with rising costs being their main risk factor. Six booked a rise in sales compared with four in the prior quarter.
Firms in the Philippines were the survey's third-most positive, with seven of nine companies enjoying increased sales. Sentiment was unchanged in Indonesia while in Malaysia, most respondents showed an upturn.
In Singapore, optimism returned after three quarters of neutral readings. All 11 respondents retained employment levels over the past three months, but five reported increased sales.
(Writing by Shihar Aneez; Editing by Christopher Cushing)
