SEOUL/SINGAPORE: Asia's top companies are at their most optimistic since the global financial crisis nearly two years ago, with a steady recovery in
economies and financial markets lifting the fortunes of firms across sectors.

A Reuters check-up of 100 leading Asian companies, from Japan to India, shows the government stimulus-fueled recovery across Asia has filtered through to the corporate sector, with the technology and resources industries leading the pack.

Of the 100 companies, 59 had a 'positive' to 'very positive' rating on their six-month outlook, its highest since Reuters started the review in mid-2009 and up from 38 in the December review.

Those with a 'negative' or 'very negative' view halved to 8, with the rest as 'neutral'.

"It certainly looks like we are in a growth mode now and that companies are going to have record earnings in 2010," said Todd Martin, Hong Kong-based Asia Equity Strategist at Societe Generale.

The views come after strong quarterly profits at South Korea's Samsung Electronics, the world's biggest electronics company by revenue. And Sony Corp halved its annual loss forecast in February, underscoring the improved mood at technology companies as the corporate sector resumes buying personal computers, and consumers acquire big ticket items such as flat-panel TVs and digital cameras.

"Demand is strong and we are meeting only 80 percent of our customer demand ... so we are seriously considering adding new capacity," Kwon Young-soo, chief executive of the world's No.2 LCD panel maker LG Display (034220.KS) said in March.

The outlook for resources, closely tied to economic fortunes, also appears brighter for the likes of the world's top mining group BHP Billiton and second-ranked steelmaker Nippon Steel.

Miners such as BHP and Rio Tinto are moving to price iron ore to Asian steelmakers quarterly instead of through annual fixed-price deals, helping them cash in on rocketing prices of the steelmaking ingredient this year.

Japan's big automakers, however, are reining in expectations due to massive recalls led by industry leader Toyota Motor, and uncertainty over whether demand growth will be sustained even governments end incentives for the sector.

PRE-CRISIS HIGHS

Recent stock market gains have reflected hopes for a recovery in earnings growth, with the MSCI index of Asian shares trading near 2-year highs to test pre-financial crisis levels. The index is up 11 percent from its February lows.

Japan's Nikkei average is hovering around 18-month highs and the South Korean market is at 21-month highs. The check-up shows that Japanese
companies are significantly more optimistic than they were a quarter ago.

One significant challenge is inflation and the tightening of monetary policies, which may check consumption and force companies to become more cautious about capital spending.

Australia's central bank on Tuesday raised its key cash rate by 25 basis points to a 14-month high of 4.25 percent and flagged further moves ahead as the resource-rich nation rides a tide of Asian demand.

Malaysia and India already hiked rates in March, and Singapore and China are set to tighten market liquidity.

China, the world's third-largest economy, is expected to raise interest rates in the second quarter and once more by early 2011, in addition to more modest tightening measures such as further increases in banks' required reserves, according to a Reuters survey in March.

Still, the gradual rate increases will not reverse the recovery, some analysts said.

"There won't be a double-dip," said Societe Generale's Martin. "We are seeing a synchronous growth."