Asia's top companies have become more optimistic about their business outlook with the retail and shipping industries rebounding sharply in the second quarter of 2013, the latest Thomson Reuters/INSEAD Asia Business Sentiment Survey shows.

The Thomson Reuters/INSEAD Asia Business Sentiment Index climbed six points to 71 in June, its highest level in five quarters and the third consecutive quarterly rise. A reading above 50 indicates a generally positive outlook.

Global economic uncertainty remains the biggest business risk across most countries and sectors, but 44 percent of the 91 companies that participated in the poll are now positive about their outlook, up from 30 percent in the prior quarter.

Corporate sentiment in China, the world's second largest economy, remained unchanged at its record low of 50 amid worries about rising costs and global economic uncertainty.

"If you go back a year ago, there is a lot of concern about the global economy - a hard landing in China, a collapse in Europe, and a double dip in the US. Some of those fears are still around, but they have certainly faded over the course of last year," said Shane Oliver, chief economist at AMP Capital Investors in Sydney.

"So whilst companies in Asia still worry about China, it's about whether the growth is 7.5 percent or 7.8. Some of the more extreme fears that were seen a year ago continue to fade, showing a gradual pickup in company optimism."

Corporate sentiment in Japan showed solid improvement with the index rising to the highest level in three years as aggressive monetary stimulus starts to revive the economy.

Of the 19 Japanese respondents, which included Daiichi Sankyo Co Ltd, Toshiba Corp, Hitachi Ltd and Sharp Corp, five were positive on their outlook and 14 were neutral. In the previous survey, only one out of 22 participants was positive.

Australia and Indonesia saw big improvements in their outlook and were among the most optimistic economies in Asia.

Australia continued to improve in the second quarter, driving the country's sentiment index to its highest level since the first quarter of 2012, although more participants were worried about the global economy.

"From a general point of view, it has a lot to do with the currency, interest rates going down, and the offshore news has been better," said Stephen Walters, chief economist at JP Morgan in Sydney.

On the downside, business sentiment in India fell to its weakest level in more than three years, weighed down by worries about rising costs, while Thailand's index dropped to an all-time low of 42 from 60.

Reuters