Asian CEOs most confident in world

Business leaders in Asia reported the most positive economic outlook of any region in the world, as the Young Presidents’ Organisa-tion’s Global Pulse Survey reported an upswing of 2.9 points to 62.9 in Asia, the highest level since the first quarter of 2015.
A score of 50 indicates neutral confidence.
Confidence rallied within the Asean countries during the second quarter of the year, on the back of a modest weakening of the US dollar and signs that the slowdown in the Chinese economy was stabilising.
The YPO Global Pulse Index for Asean countries jumped 3.6 points to 60.5, its highest level since the first quarter of 2015. While this still trails the wider regional score for Asia, it is in firmly optimistic territory.
The positive outlook for Asia was driven primarily by an increase in confidence in India, which climbed 1.6 points, landing at 68.0. This upswing follows impressive growth in gross domestic product last year and projections for similar economic performance in 2016 and 2017.
Elsewhere, the picture was mixed, with some jurisdictions reporting improvements in business confidence over the second quarter, while others remained relatively stable.
Malaysia and Hong Kong both saw significant increases in confidence, rising 8.4 and 8.6 points to land at 59.8 and 54.5 respectively. Business confidence in Japan remained flat, edging down 0.3 point to 54.0, and in Singapore confidence rose 0.4 point to 54.9.
In China, the region’s largest economy, confidence slipped 1.8 points to 62.2 but remained firmly within optimistic territory.
“Despite ongoing concerns about the short-term stability of the global economy, confidence within Asia’s two most important economies, China and India, remains strong,” said Shiyin Cai, founder and chief executive of Dialogue in the Dark and communications officer for the YPO Southeast Asia Region.
“Business leaders across Asia will be looking to take advantage of favourable economic conditions the rest of this year, while keeping a close eye on key economic indicators around the world.”
Worldwide, the YPO Global Pulse Index for the second quarter of 2016 rose 1.4 points to 59.7, its highest level for a year.
In line with Asia, most regions enjoyed a modest increase in confidence levels, with the notable exception of the European Union, where confidence eroded after the “Brexit” referendum result in the United Kingdom. The EU slipped 3.1 points to 58.5, its lowest score in three years.
The United States climbed 1.2 points to 60.8, its highest level for a year.
Latin America climbed 3.6 points to 54.4, while the Middle East and North Africa remained almost unchanged, edging up 0.3 point to 55.9.
Africa increased 0.6 point to 53.8, remaining the world’s most pessimistic region.
Business leaders in Asia remained optimistic with regard to expectations on future sales, employment and fixed investment, the three major components of the YPO Global Economic Index.
In the next 12 months, almost three-quarters (72 per cent) of business leaders in Asia expect to increase sales within their organisations, compared with 59 per cent in the first quarter.
In terms of hiring expectations, 38 per cent of business leaders expected to grow their workforce, an increase from the first quarter of the year when only 30 per cent believed they would increase headcounts.
Similarly, half of business leaders (49 per cent) predicted an increase in fixed investments |over the next 12 months, compared with 45 per cent the previous quarter.