TOKYO (Reuters) - Sentiment at Asia's top companies fell in the third quarter, hitting its lowest since the fourth quarter of 2009 as uncertainty about the global economy and rising costs weighed, a Reuters survey showed.
The Reuters Asia Corporate Sentiment Index fell to 63 from 71 in the second quarter of 2011. An index above 50 indicates a positive outlook.
The index was compiled from a poll of 100 executives at Asia's top firms between Sept 2-9.
Following are key country highlights from the poll:
CHINA: STILL OPTIMISTIC
No Chinese companies were feeling very positive about their business outlook in the latest quarter, versus two in the previous quarter. Asia's largest economy, however, remains one of the most optimistic in the region, with 12 out of 16 corporations, many tech and retail related, saying they felt positive about the prospects for their business. The remaining four companies were neutral, with no negative responses.
Economists expect a slight slowdown in economic growth in China, which may dip below 9 percent for the first time in more than a decade as weaker demand in debt-ridden Europe and elsewhere squeezes the nation's exporters.
Geely Automobile Holdings and insurer Ping An Insurance (Group) of China were among the Chinese companies which took part in the survey.
INDIA: REGULATORY CONCERN
Only one of the seven respondents in India, compared with two for the second quarter, said it felt very optimistic. Five others, unchanged from the previous three months, were optimistic, with one neutral.
Rather a weaker global economy, which contributed to a slowing of industrial output growth to 3.3 percent in July, most Indian firms cited regulatory change and government policy shifts as their main concerns.
Respondents to the poll included the world's biggest coal miner, Coal India, and outsourcing firm Infosys Ltd.
JAPAN: MOSTLY NEUTRAL
The mood in Japan , Asia's No. 2 economy, was markedly gloomier than in China with 19 out of 26 respondents saying they had a neutral outlook for the business environment over the coming months.
One was negative, while six were feeling positive about their prospects.
Although many exporters are being hammered by a strong yen, which has become a haven for jittery investors, most still said that economic uncertainty loomed larger.
Japan 's economy in the second quarter shrank 0.3 percent, the third consecutive contraction. In the three months, exports dipped 4.9 percent, the biggest drop since a 25.3 percent of drop in January-March 2009.
Industrial conglomerate Hitachi Ltd, liquid crystal display maker Sharp Corp and Japan 's No.1 steel maker, Nippon Steel took part in the survey.
AUSTRALIA: ECONOMIC CLOUD
Only one Australian company in the survey responded with a positive outlook. Three others were neutral with two corporations negative.
In the second-quarter survey, two corporations out of 11 gave a positive reply with one very positive. In the first quarter no companies gave a negative reply.
Economic uncertainty was the dominant risk cited by Australian firms.
SOUTH KOREA: DEJECTED
Among the region's economies, South Korea showed the biggest about-face in corporate outlook, with three negative and one neutral response for the quarter compared with three positive and one neutral outlook in the previous three months.
South Korea 's manufacturing sector contracted in August for the first time in 10 months because export orders slowed, according to HSBC/Markit purchasing managers' index (PMI) for the country released on Sept 1.
Steelmaker POSCO was one Korean respondent to the survey.
SOUTHEAST ASIA: MORE PESSIMISTIC
In Singapore, three companies said they were neutral with three others negative. A cloudy world economy dominated the mood with rising costs also unnerving corporations. In the previous quarter five out of eight had a positive outlook.
In Thailand, one firm was positive with two others neutral. Two companies in the Philippines, were positive.
Economic uncertainty in all three countries was the main business risk picked by respondents, which included including Thailand's leading industrial conglomerate, Siam Cement, and Philippine Long Distance Telephone Co (PLDT).
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