Thomson Reuters/INSEAD: Asia firms' sentiment slips on geo-political tensions

According to the latest Thomson Reuters/INSEAD survey, business morale among Asian companies deteriorated for the first time in three quarters in July-September, as escalating geo-political tensions outweighed an improved economic performance in the region.

Key Findings:

The Thomson Reuters/INSEAD Asian Business Sentiment Index .TRIABS, RACSI, representing the six-month outlook of 86 firms, slipped to 69 for the September quarter from 74 three months before. A reading above 50 indicates a positive outlook.

China, India and South Korea led the fall in sentiment in the third quarter.

Most Southeast Asian economies and Australia put in a stable performance, limiting the downside in the overall index.

Antonio Fatas, a Singapore-based economics professor at global business school INSEAD, “Companies expressed concerns this quarter about trade and diplomatic tensions not only in the region but also in the world. This brought the index down, in a reflection of cautiousness because of the potential risks that could derail the current state of the economy.”