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Dec 16 (Reuters) - Asia's biggest companies were the least optimistic in four years for their near-term business prospects as concern over slowing economic growth in China damped sentiment in the fourth quarter, a Thomson Reuters/INSEAD survey showed.
The Thomson Reuters/INSEAD Asian Business Sentiment Index .TRIABS RACSI , representing the six-month outlook at 103 firms, was 58 for October-December versus 60 three months prior.
Singaporean firms were again the most downbeat, with those in Taiwan and Malaysia also yielding an index below 50 - the mid-point separating optimists from pessimists. Sentiment was highest in the Philippines, ahead of South Korea and Japan. urn:newsml:reuters.com:*:nL3N1432N5
SINGAPORE: 2ND TIME MOST PESSIMISTIC AT 21 IN Q4 VS 14 IN Q3
Singaporean firms saw nothing positive in the first half of 2016, with three saying their outlooks were neutral and four negative. Four cited China's economic slowdown as the top worry while one flagged a U.S. interest rate rise expected this week as a concern.
In the three months before polling, two firms booked more orders and sales while one said business fell. Five retained staffing levels whereas two took on more hires.
TAIWAN: WEAKENING EXPORTS PUSH INDEX TO 38 VS 50
Taiwan's reliance on weakening exports and a brush with recession in the third quarter turned sentiment negative from neutral in the last survey, the culmination of a year's steady descent into pessimism.
Two of eight respondents were negative and the rest neutral. Volatile financial markets topped the risk list for four firms, with two worried about the economy across the Taiwan Strait. The volume of business was stagnant at half of the respondents while staffing was unchanged at six.
MALAYSIA: SURVEY'S MOST NEGATIVES LEAVES INDEX AT 41 VS 25
Five of 11 Malaysian respondents rated their outlooks as negative, in a quarter which saw official data confirming economic growth was the slowest in over two years. Other firms were equally split between neutral and positive.
With the ringgit MYR= Asia's worst-performing currency of 2015, five firms cited financial market volatility as their top risk. Other risks included falling asset quality and oil prices. Staffing was unchanged at eight firms while three lost business.
CHINA: TWO FEAR U.S. RATE RISE AS INDEX FALLS TO 50 VS 80
Three Chinese firms were neutral in their outlook while two each were positive and negative. Just one cited the slowdown in Asia's biggest economy as a risk to its prospects, while two were more concerned about the impact of a U.S. interest rate rise.
None of the firms added staff over the past three months, during which time one gained business while two lost out.
The overall neutral outlook contrasts with the upbeat view of three months prior, when five firms responded to the survey.
THAILAND: LEAST OPTIMISTIC IN NEARLY TWO YEARS AT 58 VS 60
Four Thai firms were upbeat about the coming half-year, with seven indifferent and two less enthused. China's slowdown was keeping four firms on edge, while others brooded over rising competition and oil prices falling to seven-year lows.
One firm saw its chief risk as uncertainty in the domestic economy, managed by a military government for a year and a half.
Six booked more business over the past three months versus four that reported a decline. Staffing was unchanged at seven.
AUSTRALIA: CHINA RESOURCE WORRY PULLS INDEX TO 61 VS 83
Sentiment at five of nine firms was positive, while one was neutral and three negative. The top worry for four was China - the top buyer of natural resources - whose economic slowdown is spurring Australia to shift reliance to services from resources.
Four reported increased orders and sales and three added personnel, versus two firms that lost business and cut staff.
The overall outlook compared with the more upbeat view of three months prior, when three firms responded to the survey.
INDONESIA: SURVEY'S STEEPEST RISE IN SENTIMENT AT 64 VS 29
Two of seven Indonesian firms were upbeat about the first half of 2016, with none negative. Three said China's economy was the chief risk to their outlooks, whereas two feared the global impact of a U.S. rate hike.
Two booked more business over the past three months while three saw less. Staffing was flat at almost all respondents.
INDIA: VOLATILE FINANCIAL MARKETS PULL INDEX TO 71 VS 79
Seven Indian firms expressed optimism for the coming half-year whereas three were neutral and two pessimistic - the first time the economy has garnered more than one negative response.
Four firms cited volatile financial markets as the top risk, with others citing climate change, weak consumption and the pace of economic reform.
Three enjoyed more business over the past three months while most others reported no change. Staffing, on the whole, was also unchanged.
JAPAN: SENTIMENT STAYS AT ALMOST SIX-YEAR HIGH OF 73
Sentiment in Japan was unchanged from the previous survey - keeping the index at its highest since the beginning of 2010 - with five respondents again providing a positive view and the remaining six again neutral.
Seven said China's slowdown was their chief risk, as in the last survey, while two pointed to a U.S. rate hike. One firm raised staffing and three booked a rise in sales and orders.
SOUTH KOREA: ECONOMIC DATA SPURS SENTIMENT TO 75 VS 50
South Korean firms were more bullish towards the near-term compared with three months previously, since when data showed an economy growing at its fastest rate in five years.
Six respondents were equally split between positive and neutral, with China's economy worrying two while others fretted about oil prices. Two booked more business while one reported a decline. Most said staffing was the same as three months prior.
PHILIPPINES: 2ND TIME SURVEY'S MOST OPTIMISTIC AT 77 VS 95
Seven of 11 firms were positive about the coming six months, with one firm negative - versus 10 of 11 in the last survey with no negatives. In the interim, data showed economic growth in the third quarter was slower than market estimates.
Causes for concern included U.S. rates, financial market volatility, increased competition and political uncertainty ahead of elections next year. Seven companies reported increased sales and orders, with four taking on more staff to accommodate.
Note: Companies surveyed change from quarter to quarter
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Main story
urn:newsml:reuters.com:*:nL3N1432N5 Highlights by sector
urn:newsml:reuters.com:*:nL3N143177 PDF of survey
http://reut.rs/1Z9poB1 Business sentiment index
http://reut.rs/1SWv1i5 Biggest perceived risks
http://reut.rs/1SWuDAo Outlook by economy
http://reut.rs/1SWuMDS Outlook by sector
http://reut.rs/1SWuKMd Advisory
urn:newsml:reuters.com:*:nL3N1442V3
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Writing by Siddharth Iyer; Editing by Christopher Cushing)