Asian CEO confidence hits three-year high in August

Find out why the chiefs are upbeat.

For the first time in more than two years, Asia is the world's most optimistic region. The YPO Global Pulse Confidence Index for Asia surged nearly 4.0 points to 67.3, returning to a level not seen since April 2011.

Asian CEOs are now the world's most likely to boost capital spending over the next 12 months. The YPO Fixed Investment Confidence Index for Asia jumped 5.6 points to 66.7, comfortably above the global composite level of 62.5. More than half (56%) of the CEOs surveyed in Asia said their capital expenditures would increase by more than 10% by this time next year.

"A variety of country-specific factors contributed to the widespread jump in confidence throughout the region," said Terry O'Connor, regional chief executive officer of Courts Asia and an executive member of the YPO Singapore Chapter. "Political changes in India, tempered violence in Thailand and the approval of the 'third arrow' of reforms in Japan served as a backdrop to the regional uplift in sentiment."

Rising business confidence in Japan and India contributed to the regional mood, as did recovering optimism in the fast-growing Asian Tiger Cub economies (Indonesia, Malaysia, Philippines and Thailand), whose composite index increased for the second straight quarter since registering its lowest level in the five-year history of the index. In China, confidence was largely unchanged, with the index slipping 0.7 point to a still lofty 63.4.

Globally, the YPO Global Pulse Confidence Index rebounded from a half-point dip last quarter, increasing 1.5 points to 64.0. The rising tide was led by a 4.4 point increase in Canada as well as the Asian confidence increase. With the exception of a marginal decline in Latin America, every region contributed to the global gain. The U.S. confidence index rose for the third consecutive quarter, to 64.8.