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Asian business sentiment near 3-year low as trade war drags

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CONFIDENCE among Asian companies held near three-year lows in the first quarter as a US-China trade dispute dragged on, pulling down a global economy that is already on a downward path, a Thomson Reuters/ INSEAD survey found. Read more at The Business Times.

Thu, Mar 21, 2019 - 5:50 AM

A reading above 50 means optimistic respondents outnumbered pessimists, but the latest index still marks one of the five worst since the world started its recovery from the 2008-2009 global financial crisis."Things have not gotten worse but a lot of uncertainty is putting companies in wait-and-see mode," Antonio Fatas, a Singapore-based economics professor at global business school INSEAD, said of US-China talks on trade relations.

Global agencies including the International Monetary Fund and the Organisation for Economic Cooperation and Development have said failure to resolve trade tension could further slow a downward-trending global economy. "We don't see a global hard landing as a likely scenario when we look at economic factors such as inflation and credit conditions," said Young Sun Kwon, economist at Nomura in Hong Kong."But there are big uncertainties in politics."

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