An index, which measures the sentiments, fell from a one-year high of 82 to 65. A reading above 50 indicates an overall positive outlook. While no one was negative, 14 of 20 respondents said they were neutral. As many as 30 per cent were optimistic from 65 per cent.
"Eleven respondents cited the murky outlook on global economy as the top risk; five considered rising costs the biggest threat and some were worried about regulatory uncertainties."
Despite the less upbeat outlook, 18 reported increased orders and the other two said order levels were the same. Nearly half reported higher employment levels and 11 said levels were the same. Sentiments were weak in China and Australia. Sentiment among Asia's top companies edged to 64 from 62.
The index snapped two quarters of decline, as solid improvement in the Philippines and South Korea outweighed weakness in China, India and Australia. Of the 102 Asian companies, 65 per cent reported a neutral outlook, 31 per cent positive and 3.92 per cent negative.