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GRAPHIC-Valuation of Asian shares rises to 11-year high

Published 09/09/2020, 07:13 PM
Updated 09/09/2020, 07:20 PM
MIWD00000PUS
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MIAP00000PUS
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Sept 9 (Reuters) - The valuation of Asian shares surged to a
near 11-year high in August, Refinitiv data showed, thanks to an
increase in global liquidity and emerging signs of economic
recovery in some parts of the region.
The forward 12-month price-to-earnings ratio (P/E) for
MSCI's broadest index of Asia-Pacific shares .MIAP00000PUS was
16.71 last month, the highest since October 2009. The index
itself gained 4.9% in August and hit a two-year high.
That was still less than the P/E ratio of 20.15 for MSCI's
global stock index .MIWD00000PUS , which gained 6% last month.
Analysts said surveys showing Chinese factory activity
expanded at the fastest rate in nearly a decade in August had
boosted Asian shares last month.
India and Australia shares were the most expensive in the
region with P/E ratios of 20.68 and 17.4 respectively.
Amish Shah, India equity strategist at Bofa Securities, said
India's valuation premium to other emerging markets of 50% was
still less than its all-time peak of 73%.
"Lower premium to some extent reflects the risk of high
(coronavirus) infections impacting economic growth near term.
That said, we do believe that the markets would consolidate in
the near term since large sectors such as IT, Telecom, Pharma
now offer limited scope for further upside," he added.
China and Hong Kong shares were the cheapest in the regions
with P/E ratios at 11.24 and 11.67.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Asia-Pacific equities performance in August 2020 https://tmsnrt.rs/2ZeBPTU
Asia-Pacific equities performance in 2020 https://tmsnrt.rs/3m38gOT
Valuations of Asian-Pacific equities https://tmsnrt.rs/338qLZz
MSCI Asia and World index's PE https://tmsnrt.rs/35dGjOn
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