Reuters News Asia Corporate Sentiment Survey

Reuters News Asia Corporate Sentiment Survey

Reuters News, the world’s largest international news agency, polled 100 executives in 11 Asia-Pacific countries across a broad range of sectors including autos, financials, resources, technology, food and retail. The poll was conducted between Dec. 5-9 and of the 68 that replied, 29.41% were positive about the six-month business outlook, a decline from the 39.44% positive outlook in the previous quarter. Fifty-five percent were neutral in their outlook with about 14% reporting a negative outlook, little changed from the previous quarter.

· Business sentiment at Asia's top companies fell in the fourth quarter to its lowest since the fourth quarter of 2009, weighed down by growing doubts over the strength of the global economy.

· The Reuters Asia Corporate Sentiment Index fell to 57 from 63 in the third quarter of 2011.

· Worries about defaults in the euro zone have clouded the outlook for the global economy, weighing on sentiment across the board.

· China remains one of the most optimistic countries in Asia with seven of 16 companies responding said they maintained a positive outlook.

· Indian companies continue to remain concerned about government policies.

· Japan was markedly gloomier than China with only one positive response and five negatives out of 20 companies responding, compared with six positives in the previous quarter.

Exporters continue to complain about a strong yen.

· The technology sector turned bearish from the previous quarter with an increase in negative outlook. Overwhelmingly the tech sector expressed concerns about the global economy and its

effects on consumer demand.

· The retail sector in general and in China specifically turned more positive with all five polled saying they had a neutral or positive outlook, compared to the third quarter when more than half of

those polled had a neutral to negative rating.

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