<div><p>LONDON (Reuters) - Institutional investors are ending the year with a burst of optimism, breaking a three-month decline in confidence, State Street said on Tuesday.</p><p>The U.S. financial services firm said its global investor confidence index rose to 103.9 in December from 100.8 in November.</p><p>A reading of 100 is neutral.</p><p>In Asia, investor confidence rebounded by 6.3 points, rising to 97.5 from November's reading of 91.2.</p><p>State Street said confidence remained largely constant in other regions with sentiment in North America at 103.1 versus 102.2 and Europe declining slightly to 104.6 from 104.8.</p><p>"This month's up-tick in global investor confidence stemmed largely from an improvement in the mood in Asia, where risk appetite rose to an eight-month high," said Harvard Professor Ken Froot, a co-developer of the index.</p><p>"Elsewhere portfolio reallocations were modest. With three of the four indices over the neutral level of 100, institutions are continuing to add to their risky asset positions, but at a slower pace than was evident earlier in the year."</p><p>Froot said investors would be watching for signs of renewed economic growth and "well-designed" stimulus exit strategies from central banks before adding significant risk in the new year.</p><p>The data is extrapolated from movements in around $17.9 trillion of assets State Street holds as custodian and administrator for institutional investors.</p><p>(Editing by Andy Bruce)</p><img src="http://admatch-syndication.mochila.com/images/ad.gif?aid=66102195&bid=informcom" /></div><div id="copyright"><div>

Copyright 2009  <a href="http://www.reuters.com/finance">Reuters US Online Report Business News</a></div></div>