Tuesday, November 26, 2013

Most Asia Stocks Fall as Valuations Approach 6-Month High



 Most Asian stocks declined, dragging the regional benchmark index lower for the first time in three days, after valuations climbed to near the highest level in six months.

Honda Motor Co. (7267) slid 1.2 percent as the yen strengthened against the dollar, weakening the earnings prospects for Japanese carmakers. Doosan Engineering & Construction Co. (011160) slumped 15 percent after the Korea Economic Daily said the Seoul-based provider of civil engineering and architectural services will sell redeemable convertible preferred shares. Perseus Mining Ltd. rose 5.5 percent in Sydney, leading a rebound in gold producers after the precious metal climbed.

The MSCI Asia Pacific Index slid less than 0.1 percent to 141.74 as of 9:46 a.m. in Hong Kong, with four shares falling for every three that advanced. The measure rose 9.6 percent this year through yesterday as investors bet the Federal Reserve will maintain its bond buying into 2014.

Valuations on the MSCI Asia Pacific Index yesterday climbed to 13.9 times estimated earnings, close to the multiple of 14 reached on Nov. 18, the highest level since May, according to data compiled by Bloomberg. That compares with 16.3 yesterday on the S&P 500 and 15.2 for the Stoxx Europe 600 Index.
(Source: Bloomberg)

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