(Reuters) - Business sentiment at Asian companies rose to its highest level in more than a year in the third quarter, buoyed by signs that China's economy is stabilising and as Brexit concerns receded.
Sentiment was most upbeat among real estate, metals and chemicals companies as well as energy firms and utilities. None of the sectors had a reading below 50, the level which separates optimists from pessimists.
The Thomson Reuters/INSEAD Asian Business Sentiment Index, representing the six-month outlook at 118 firms, was 68 for the July-September quarter of 2016 versus 67 three months prior.
Concerns over energy prices and the outcome of the U.S. presidential election were cited as the main business risks.
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Australia's Stockland Corporation Ltd was one of four respondents in the sector, which posted the biggest jump in sentiment for the quarter among all sectors.
Of the firms responding, two were positive about their business outlook. In Australia in particular, historically low borrowing costs have sparked a boom in home-building.
Risks to respondents' business outlooks included an increase in interest rates and a rise in energy prices.
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Japan's Canon Inc and Taiwan's Advanced Semiconductor Engineering Inc were among 27 respondents in this sector.
Twelve of the respondents had a positive outlook, while 14 said they were neutral. Twelve also said business volume had risen since the previous quarter's survey.
The fallout from Britain's decision to leave the European Union and the possibility of dramatic change in U.S. policies should Donald Trump win the November presidential election were cited as chief risks.
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Four companies, including India's Adani Power Ltd and Australia's Oil Search Ltd, participated.
The sector's companies generally saw a higher volume of business and hired staff. Two firms had a positive outlook while the other two were neutral, with energy prices cited as the biggest risk.
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Eight companies responded to this quarter's survey, including Australia's Brambles Ltd.
Five had a positive outlook while two were negative and one was neutral.
Half the firms polled said staffing and business volume had risen. Risks cited included a subdued global economy and currency fluctuations.
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Of 14 respondents from the sector, which included Thailand's Minor International PCL, there was only one with a negative outlook.
Seven were neutral about the sector's prospects while six were positive. Staffing and business volume for more than half of the companies were either the same or lower compared with the previous survey.
Top risks included a Trump presidency and China's rising corporate debt.
MOST OTHER SECTORS RISE
Sentiment rose in the Metals and Chemicals sector, to 75 in the third quarter from 64 in the second. The Construction and Engineering sector also rose to 58 from 50, and the Household, Food and Beverage sector to 72 from 67.
Healthcare remained at the same level as last quarter, at 72.
The outlook for financial firms edged down to 62 from 65. While 10 of 24 respondents in the sector said business volume had grown, only four said hiring had risen with the majority saying staffing stayed the same.
The auto sector also declined three points, falling to 60.
Note: Companies surveyed can change from quarter to quarter
(Writing By Krishna Eluri; Editing by Muralikumar Anantharaman)