GRAPHIC-Asia's equity valuations hit 3-month low as U.S. bond yields spike

March 3 (Reuters) - Recent gains in U.S. bond yields put
valuations of lofty Asian shares under pressure, pushing them to
a three-month low in February, while higher growth expectations
lowered regional equities' valuations ratio in terms of future
earnings.
The forward 12-month price-to-earnings ratio (P/E) for the
MSCI's broadest index of Asia-Pacific shares .MIAP00000PUS was
at 17.16 by the end of last month - the lowest since November
2020.
The index gained 1.4% last month, the lowest in four months.
It has risen 4.8% so far this year.
U.S. President Joe Biden's proposed $1.9 trillion COVID-19
recovery package and vaccination roll-outs around the world have
lifted expectations of faster global economic recovery and
higher earnings growth in coming months. According to Refinitiv data, analysts have raised Asian
companies' forward 12-months earnings estimates by 2.9% in
February, the highest upgrade in four months.
The surge in U.S. bond yields also hit some high-flying
sectors in the region, affecting overall valuations.
Asian healthcare and consumer staples sector firms, which
were the most expensive sectors in the region, slumped more than
4% each in February.
Asian healthcare stocks had a P/E ratio of 30.9 at the end
of February, while consumer staples shares traded at a P/E ratio
of 23.1.
Shares of consumer discretionary and information technology
companies also dropped last month.
Among countries, India, Taiwan and Thailand were the most
expensive in the region, with P/E ratios of 21.2, 17.5 and 17.4,
respectively, Refinitiv Eikon data showed.


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MSCI Asia-Pacific and World Index's forward 12-month PE https://tmsnrt.rs/37Xjuz6
Breakdown by sector for Asia-Pacific equities' performance in
February 2021 https://tmsnrt.rs/301nD0H
Breakdown by sector for Asia-Pacific equities' valuations https://tmsnrt.rs/3811ovY
Breakdown by country for Asia-Pacific equities' valuations https://tmsnrt.rs/3r337bP
Breakdown by country for Asia-Pacific equities' performance in
February 2021 https://tmsnrt.rs/3b51e8S
Asia Pacific equities performance in 2021 https://tmsnrt.rs/3kDj1Y3
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