July 6 (Reuters) - The valuation of Asian shares surged to a
10-1/2-year high in June, tracking a rally in global stocks, as
upbeat U.S. and China data renewed hopes of a swift economic
recovery, offsetting concerns over rising coronavirus cases.
The MSCI's broadest index of Asia-Pacific shares
.MIAP00000PUS gained 4.83% last month, topping the MSCI's
World index's .MIWD00000PUS 3.03% gains.
Thanks to the rally, the index's forward price-to-earnings
(P/E) ratio rose to 15.62 at the end of June, compared with
14.34 a month earlier. This was the index's highest forward P/E
ratio since December 2009, according to Refinitiv-Eikon data.
Benchmark equity indexes in India .NSEI , Hong Kong .HSI ,
the Philippines .PSI and Taiwan .TWII , gained more than 6%
each last month.
New Zealand, India and Malaysia shares were the most
expensive in the region, with P/E ratios of 30.7, 19.3 and 17.4,
respectively.
"Equity market bulls are looking past the current economic
gloom despite not being out of the woods, and being emboldened
by the flood of ultra-cheap money," Vishnu Varathan, head of
economics and strategy at Mizuho Bank, said in a note.
"Insofar that liquidity, not fundamentals, determines market
buoyancy, we must brace for higher latent volatility."
Asian shares scaled four-month peaks on Monday as investors
counted on a revival in Chinese activity to sustain global
economic growth, even as surging coronavirus cases delayed
re-openings across the United States. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Asia-Pacific equities performance in June 2020 https://tmsnrt.rs/31vOlQO
Asia-Pacific equities' performance in 2020 https://tmsnrt.rs/2Zlsg4S
Valuation of Asia-Pacific equities https://tmsnrt.rs/2ZorKmJ
MSCI Asia and World index's PE https://tmsnrt.rs/3geE4MY
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