By Gaurav Dogra
Dec 4 (Reuters) - Valuations of Asian shares surged to an
11-year high in November, as COVID-19 vaccine hopes raised
expectations for a faster recovery in regional economies.
The MSCI's broadest index of Asia-Pacific shares
.MIAP00000PUS gained 10.2% last month, lifting its forward
12-month price-to-earnings ratio (P/E) to 16.7 at the end of
November, the highest since October 2009.
Similarly, the MSCI's World index .MIWD00000PUS gained
12.2% last month and its forward P/E touched a three-month high
of 19.67.
"Markets are indeed pricing in a high chance that the
pandemic can be resolved, but Asia still looks cheap relative to
alternate investments," said Dan Fineman, co-head of Asia
Pacific Equity Strategy at Credit Suisse.
"The current P/E and price-to-book ratio (P/B) are cheaper
than the levels coming out of the Global Financial Crisis
(GFC)," Credit Suisse's Fineman said.
India, Australia and Indonesia shares were the most
expensive in the region, with P/E ratios of 21.7, 18.3 and 18.2,
respectively, data showed.
On the other hand, Chinese, Hong Kong and South Korean
stocks were the cheapest in the regions with P/E ratios of 11.53
12.38 and 13.1 respectively.
Hopes for a global vaccine-rollout have increased as
Britain became the first western country to approve Pfizer Inc's
PFE.N COVID-19 vaccine this week and said it would start
immunization early next
week. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
MSCI Asia and World index PE https://tmsnrt.rs/2I8sLe6
Valuation of Asia-Pacific equities https://tmsnrt.rs/3ofd83V
Asia-Pacific equities performance in Nov 2020 https://tmsnrt.rs/3fZtoDe
Asia Pacific equities performance in 2020 https://tmsnrt.rs/37s8YPr
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