Feb 5 (Reuters) - Asian equities' valuations dropped to a
three-month low at the end of January, as global investors
accelerated selling risky assets on fears over the economic
impact of a virus outbreak in China.
MSCI's broadest index of Asia-Pacific shares'
.MIAP00000PUS 12-month forward price-to-earnings ratio (P/E)
fell to 13.72, compared with 14.19 at the end of last year,
Refinitiv data showed.
By Tuesday's close, the index had declined about 4.8% from
its January high of 175.13. However, some analysts said Asian
shares were still not attractive, given a slew of risk factors
such as a slowing global economy, U.S. elections and potential
for renewed trade tension.
Markets have clearly started pricing in the dynamics of
lower growth, primarily in Asia, Goldman Sachs said this week.
"EM asset valuation has cheapened during the drawdown, but
not yet in over-sold territory," it said.
In January, price valuations of Philippine, Indonesia and
Malaysian shares fell sharply.
China, Hong Kong and South Korean shares were the cheapest
in the region, with P/E multiples of 8.99, 10.36 and 10.98,
respectively.
On the other hand, Indian shares were the most expensive,
with a P/E ratio of 16.74 times.
"While history suggests markets will eventually rebound
quickly, once the incidence of new cases subsides, the
risk-reward seems to have deteriorated significantly," Citibank
said in a note.
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MSCI Asia and World index's PE https://tmsnrt.rs/2uh7uYE
Valuations of Asian equities https://tmsnrt.rs/2GR0sg3
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