* Graphic: World FX rates http://tmsnrt.rs/2egbfVh
* Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3f2vwbA
* Asian stocks lose momentum as valuation, inflation woes
persist
* Asian bond yields dip after Powell comments
* Outlook for EM Asia bonds still bearish - DBS
* Singapore stock index jumps on banking gains after OCBC
result
By Rashmi Ashok
Feb 24 (Reuters) - Most Asian equities fell on Wednesday,
shedding early gains, as investors continued to worry about
overvalued emerging market assets and a higher inflation outlook
even as the head of the U.S. Federal Reserve pushed back on
inflation concerns.
Philippine's index .PSI saw the biggest fall in emerging
Asia, shedding 1.2%, as sentiment remained weak after COVID-19
restrictions in its capital were extended earlier this week.
The Asia-ex Japan index .MIAPJ0000PUS eased 1%, reversing
an earlier rise of 0.3%.
U.S. Federal Reserve Chairman Jerome Powell soothed
inflation concerns and reiterated an accommodative policy stance
in a speech before Congress, saying the central bank would move
carefully, patiently, and with a lot of advance warning before
changing any policy settings. Some U.S. indexes pared losses overnight on his comments,
but confidence fizzled out in Asian trading hours.
"I think Chair Powell did as much as he could in terms of
dampening down on expectations of tapering, without introducing
new steps. The reality is that the market is nervous
regardless," said Mitul Kotecha, a strategist at TD Securities.
He said higher U.S. real yields and "froth" in some sectors
were fuelling concerns of a deeper correction.
"There has been a strong run up in Asian equity markets over
recent months and after such gains the temptation to lock in
gains especially given the higher discounting factor, is high,"
he added.
Ten-year U.S. Treasury yields ticked lower after Powell's
comments, and Asian bond yields followed suit.
The yield of Indonesia's 10-year bonds ID10YT=RR , a local
favourite, inched down to 6.560% from a high of 6.754% hit on
Tuesday, but still remained above three-month highs.
"Year to date, the global reflation rally has turned out to
be less broad-based than we had expected. Inflation and
commodities have performed strongly, but EM Asia bonds'
participation in the global reflation rally has been limited,"
analysts at DBS wrote.
"Now that we are also getting a quickening in pace of U.S.
curve steepening and seeing U.S. real rates breaking higher, the
global setup is turning increasingly bearish for EM Asia bonds."
Bucking the trend, Singapore's stock index .STI rose 1.6%
after Oversea-Chinese Banking Corp OCBC.SI reported a
smaller-than-expected decline in quarterly profit and growth in
its wealth business. OCBC is the second-biggest lender listed in
Singapore's stock market. nL1N2KT3HA]
OCBC's shares rose 3.1%, while larger peer DBS Group's
DBSM.SI shares topped gains on the index with a 3.2% rise.
Shares of United Overseas Bank UOBH.SI which is set to report
results on Thursday, rose 1.9%.
Continued curbs in Manila announced earlier this week
continued to put pressure on Philippine's equity index .PSI
after a lacklustre session on Tuesday, with consumer stocks
leading losses.
Food and beverage maker Universal Robina URC.PS fell
5.6%, while conglomerate San Miguel SMC.PS , with beverage to
refining operations, lost 3.1%.
HIGHLIGHTS
** Top gainers on FTSE Bursa Malaysia Kl Index .KLSE
include PETRONAS Chemicals Group Bhd PCGB.KL up 3.07% and
Genting Bhd GENT.KL up 2.37%
** Top losers on Thailand's SETI .SETI include Jutha
Maritime PCL JUTHA.BK down 12.61% and Samart Digital PCL
SDC.BK down 10.34%
** Indonesian 10-year benchmark yields are down 7.4 basis
points at 6.574% while Malaysia's 10-year benchmark yield is
down 0.1 basis points at 2.989%
Asia stock indexes and
currencies at 0424 GMT
COUNTRY FX RIC FX FX INDE STOCKS STOCK
DAILY YTD % X DAILY S YTD
% % %
Japan JPY= -0.25 -2.14 <.N2 -0.92 8.87
25>
China
India INR=IN +0.00 +0.84 <.NS 0.51 5.72
EI>
Indones IDR= +0.07 -0.28 <.JK -0.26 4.64
ia SE>
Malaysi MYR= +0.10 -0.45 <.KL 0.42 -3.41
a SE>
Philipp PHP= -0.21 -1.38 <.PS -0.87 -5.39
ines I>
S.Korea
Singapo SGD= +0.03 +0.10 <.ST 1.31 2.98
re I>
Taiwan TWD=TP +1.62 +2.27 <.TW -0.90 10.60
II>
Thailan THB=TH +0.00 -0.20 <.SE -0.33 3.20
d TI>