INSUBCONTINENT EXCLUSIVE:
A lackluster earnings performance for Asian firms in the second quarter also affected price valuations.Valuations of Asian shares took a hit
in August after a sharp sell-off due to an escalation of the United-States-China trade war.A decline of 3.4 per cent in MSCI's broadest
index of Asia-Pacific shares during August pulled down its forward 12-month price-to-earnings ratio to a three-month low of 12.78 times at
The July level was 13.1.A lackluster earnings performance for Asian firms in the second quarter - in which 55 per cent of companies in the
region missed their consensus earnings estimates - also affected price valuations last month.In a report last week, Goldman Sachs said its
fresh 12-month target for MSCI Asia-Pacific ex-Japan is 515, or 1 per cent below the previous 520 expectation
"The difference is due to further downward revisions to our top-down earnings estimates," it said.Goldman also said it maintains its target
valuation of 12.9 times forward earnings, which accounts for its baseline scenario of no US-China trade deal until after the 2020 US
presidential election.Due to the fall in P/Es, regional shares were trading at steep discount to their global peers, Refinitiv data
showed.China, Hong Kong and South Korea were the lowest-cost shares in the region, with P/E multiples of about 11 or less.India and Malaysia
were the most expensive, with ratios of 15.98 and 15.84 respectively.Get Breaking news, live coverage, and Latest News from India and around
the world on TheIndianSubcontinent.com
Catch all the Live TV action on TheIndianSubcontinent 24x7 and TheIndianSubcontinent India
Like us on Facebook or follow us on Twitter and Instagram for latest news and live news updates.
