HIGHLIGHTS-Asia Q4 Business Sentiment Survey - by economy

n">Dec 19 (Reuters) - Asia's top companies were slightly more confident on their business outlook in the fourth quarter, despite lingering doubts about the global economy, according to the latest Thomson Reuters/INSEAD Asia Business Sentiment Survey, published on Wednesday.

The Thomson Reuters/INSEAD Asia Business Sentiment Index rose to 63 in December, halting two consecutive quarters of decline. The index had fallen to 62 in September, a 7-point drop from the June survey. A reading above 50 indicates an overall positive outlook.

AUSTRALIA: UPBEAT (INDEX AT 53 VS 50 IN Q3)

Corporate sentiment in Australia picked up for a second successive quarter, but global economic uncertainty remained the biggest concern. Of the 19 respondents, four were positive, 12 neutral and three were negative. In the last quarter, two were positive, two negative and 10 neutral.

Ten respondents said their new orders increased, while two said orders decreased. James Hardie, the world's largest manufacturer of fibre cement products, and Australian warehouse operator Goodman Group took part in the survey.

CHINA: SIGNIFICANTLY MORE UPBEAT (INDEX AT 64 VS 50 IN Q3)

Sentiment among Chinese companies rebounded in the fourth quarter from an all-time low in the previous quarter. Two companies were positive, while five were neutral and none reported negative sentiment, compared with one positive, four neutral and one negative in the third quarter of 2012.

Most were worried about the global economy, while one cited rising costs. Three out of seven respondents said employment levels were higher, a significant improvement compared with only one respondent in the previous quarter. Casino operator Galaxy Entertainment Group Ltd was among the respondents.

INDIA: HIGHEST SINCE Q1 2011 (INDEX AT 100 VS 80 IN Q3)

Indian respondents grew significantly more upbeat and the country's sentiment index reached its highest level since the first quarter of 2011, with all of the seven companies surveyed positive about their outlook.

Economic uncertainty and rising costs were still the top risks cited by companies in Asia's No.3 economy.

India's YES Bank was among those taking part in the survey.

JAPAN: NEW LOW IN 2012 (INDEX AT 44 VS 48 IN Q3)

Sentiment among Japanese respondents, which included Toshiba Corp, Nippon Steel and Sumitomo Metal Corp. and Canon Inc, continued the pessimistic tone of the previous quarter.

None of the Japanese companies had a positive outlook for the first time since the survey started in 2009, with 15 out of 17 respondents neutral and two negative.

Foreign exchange volatility was seen as the biggest risk by three companies, while economic uncertainty worried the majority.

SOUTH KOREA: IMPROVEMENT (INDEX AT 50 VS 20 in Q3)

Sentiment improved after the country's sentiment index hit its lowest level since the third quarter of 2011 in September.

All of the 11 respondents were neutral about their outlook, an improvement compared with three negative respondents and two neutral in the previous quarter.

Global economic uncertainty was the top business risk for Korean companies, while one saw foreign exchange volatility as a concern. Hyundai Heavy was among those taking part in the survey.

TAIWAN: LOWEST SINCE Q3 2011(INDEX AT 33 VS 40 IN Q3)

The country's sentiment index hit its lowest level since the third quarter of 2011. Two of three respondents were neutral about their outlook, while one was negative.

All of the companies in the survey saw economic uncertainty as the biggest risk to their business outlook. Yuanta Financial Holdings Co. was among those taking part in the survey.

SOUTH EAST ASIA: MOSTLY OPTIMISTIC (PHILIPPINES, INDONESIA, MALAYSIA AT 100; SINGAPORE AT 50; THAILAND 75)

Corporate sentiment from Southeast Asia was mostly upbeat, with Malaysia, Indonesia and Philippines recording the highest scores. All of the 15 respondents from the three countries were positive about their business outlook.

Thai firms also grew more upbeat as the country's index improved from the last quarter, with three out of six companies reporting positive sentiment and three neutral.

However, Singapore's sentiment index fell to its lowest level since the fourth quarter of 2011. Nine of 11 companies surveyed were neutral, one was negative and one positive.

Notes:

** Companies sampled for the survey may change from one quarter to the next.

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HIGHLIGHTS-Asia Q4 Business Sentiment Survey - by sector

n">Dec 19 (Reuters) - Asia's top companies grew slightly more confident on their business outlook in the fourth quarter, reversing two consecutive quarters of declining confidence, according to the latest Thomson Reuters/INSEAD Asia Business Sentiment Survey, published on Wednesday.

The Thomson Reuters/INSEAD Asia Business Sentiment Index rose to 63 in December from 62 in September, when it saw a 7-point fall from the June survey. A reading above 50 indicates an overall positive outlook.

AIRLINES: MOST PESSIMISTIC (INDEX AT 0 VS 67 IN Q3)

The only carrier polled was negative in its outlook, making airlines the most pessimistic sector. Global economic uncertainty that hurt travel mostly to and from the euro zone has eaten into airlines' margins in recent quarters. High fuel prices and regulatory uncertainty remain concerns for Asia-Pacific carriers.

AUTOS: MOSTLY NEUTRAL (INDEX AT 60 VS 50 IN Q3)

Four out of five automakers polled had a neutral outlook, while just one respondent had a positive outlook. Apart from economic uncertainty, the risk of foreign exchange volatility kept carmakers uncomfortable.

BUILDING: TURNS MORE BEARISH (INDEX AT 25 VS 33 IN Q3)

Sentiment for the building sector continued to deteriorate, with one respondent having a negative outlook, and the other a neutral view. One of the participants cited global economic uncertainty as a risk, while another participant said declining business confidence dented the outlook.

FINANCIALS: SENTIMENT WORSENS (INDEX AT 50 VS 57 IN Q3)

Financials were mostly neutral with all but one of the 18 respondents saying that global economic uncertainty may hurt their businesses going forward. One participant said rising costs was the biggest risk.

FOOD: MOST BULLISH (INDEX AT 77 VS 73 IN Q3)

Food and drinks companies were the most bullish with an index reading of 77 for the quarter, an improvement on the last quarter's 73. Six out of the 11 companies polled had a positive outlook, while the rest were neutral. Higher costs were a concern, and commodity price volatility and changes in consumption trends also posed a risk. An overwhelming eight respondents said new orders were likely to increase.

DRUGS: OPTIMISM FADES (INDEX AT 72 VS 80 IN Q3)

Four of the nine drugmakers had a positive outlook for the fourth quarter and the rest were neutral, but the average index still fell for the second straight quarter. Drugmakers mostly cited global economic uncertainty as the biggest concern. Six respondents said they expected new orders to rise.

PROPERTY: WEAKENED SENTIMENT (INDEX AT 69 VS 75 IN Q3)

Property companies saw a fall in sentiment during the fourth quarter and were mostly neutral. These companies had seen significant improvement in business sentiment in the third quarter, when five of 10 surveyed responded with a positive view and the others with a neutral view. One company cited regulatory uncertainty as the biggest risk in the fourth quarter.

RESOURCES: UPTICK IN SENTIMENT (INDEX AT 68 VS 63 IN Q3)

Half of the 14 resource firms were positive on their outlook, and most of them expected customer payments to remain stable. Three participants said rising costs was the biggest risk they faced, while most others worried about global economic health. Seven participants saw no change in new orders.

RETAIL: SIGNIFICANT IMPROVEMENT (INDEX AT 75 VS 50 IN Q3)

Retail companies showed strong improvements in sentiment in the fourth quarter, with four participants saying they were positive, while the rest were neutral. Rising costs and the health of the global economy were cited as the main risks to the outlook by retailers. One of the eight respondents, which included CP All, Fast Retailing and Galaxy Entertainment, said increased competition posed another challenge.

SHIPPING: TURNS BULLISH(INDEX AT 67 VS 50 IN Q3)

Sentiment for shipping companies improved, with none of the six companies polled being bearish. None of them said they were worried about rising costs or foreign exchange volatility, and most of them expected customer payments to remain the same. This was in contrast to the mixed responses from shipping companies in the previous quarter, when one company held a positive view, one neutral, and a third negative.

TECHNOLOGY: SENTIMENT ERODES FURTHER (INDEX AT 57 VS 58 IN Q3)

Technology firms were less optimistic. Ten of 14 companies polled were neutral about their outlook, three were positive, and one was negative. In the last survey, 13 of 18 participants were neutral and four were positive. The majority of the tech companies surveyed cited global economic uncertainty as their biggest business risk. Two said regulatory uncertainty was their biggest risk.

Note:

** Companies sampled for the survey may change from one quarter to the next.

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