May 6, 2020 / 5:42 AM / 24 days ago

Asian stock valuations hit 3-month high in April - Refinitiv data

May 6 (Reuters) - Asian equities valuations jumped to the highest since January at the end of April, following a sharp recovery in regional shares last month due to the stimulus measures unveiled by governments to mitigate the damage caused by the coronavirus pandemic.

MSCI’s broadest index of Asia-Pacific shares gained 8.13% in April, recording its best month in more than four years. The surge drove the index’s 12-month forward price-to-earnings (P/E) ratio to 13.46 at end-April, compared with 11.79 a month earlier.

Asian equities reflect excessive optimism about corporate performance, ANZ Bank said in a report, warning that the first-quarter corporate results might reflect the full scale of the growth shock that would lead to renewed downward pressure on regional equities.

So far, Asia’s large- and mid-cap firms have posted a 17% fall in first-quarter net profits, data from Refinitiv Eikon showed.

China, Vietnam and South Korea shares were the cheapest in the region, with P/E ratios of 9.6, 10.4 and 10.6, respectively.

New Zealand was the most expensive with a P/E ratio of 28.3, followed by Thailand and India.

Despite the sharp recovery last month, Asian shares lagged their global peers in terms of valuations. MSCI’s World Index gained about 10.6% last month and its P/E ratio jumped to a 16-year high of 16.62.

Reporting by Gaurav Dogra and Patturaja Murugbaoopathy in Bengaluru; Editing by Subhranshu Sahu

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below