South korea: South Korea's business sentiment saw a notable rise for the third consecutive month, reaching a 3.5-year high in May, primarily driven by robust semiconductor exports, as revealed by a recent central bank survey.

According to Yonhap News Agency, the Composite Business Sentiment Index (CBSI) for all industries increased to 98.9 in April, marking a 4-point rise from the previous month, based on findings from the Bank of Korea (BOK). This figure represents the highest level recorded since October 2022, when the index peaked at 99, and also indicates the largest monthly gain following a 4.4 percent increase in May 2023.

The CBSI serves as an indicator of corporate expectations concerning business conditions, with readings below 100 suggesting that pessimists outnumber optimists. The index for manufacturers advanced by 1.7 points from the previous month, reaching 100.8 in May, surpassing the 100 threshold for the first time since August 2022. Meanwhile, the index for nonmanufacturers rose by 5.4 points to 97.5.

The survey also highlighted an improved outlook for June, with a 3.7-point increase to 97.6 from the previous month's forecast of 93.9. Additionally, the economic sentiment index (ESI), which captures the sentiment of both consumers and businesses, climbed by 5.8 points to 97.5 for May.

Conducted earlier this month, the survey included responses from 3,201 companies, comprising 1,791 manufacturing firms, as reported by the BOK.