* Asian stocks slip from 13-month highs on valuation
worries
* China market worried by growing queue of new share issues
* South Korean won jumps to an 11-month high
(Repeats to more subscribers)
By Umesh Desai
HONG KONG, Sept 21 (Reuters) - Asian stocks eased on
Monday, pulling further away from 13-month highs hit last week,
as investors worried prices may have raced too far ahead of
economic fundamentals, with shares in China feeling supply
pressures ahead of a string of IPOs.
Major European and U.S. stocks futures were lower, pointing
to a weaker opening in their respective markets. Futures on the
Dow Jones Euro Stoxx 50 <STXEc1> were down 0.2 percent while
U.S. equity futures <SPc1> were 0.15 percent lower.
In South Korea, the influx of foreign money into stocks
boosted the won <KRW=> to an 11-month high, forcing
authorities
to intervene in order to check the currency's strength and
prevent a decline in the country's export competitiveness.
[]
The U.S. dollar extended last week's gains with traders
covering their short positions ahead of this week's Federal
Reserve policy meeting and a Group of 20 summit.
The greenback, measured against a basket of currencies
<.DXY>, <USD=> was up 0.55 percent at 76.845 by late afternoon,
off a one-year low of 76.01 struck on Sept 17.
That rise pulled gold <XAU=> away from near 18-month highs
to a one-week low of below $1,000 per ounce. The yellow metal
has gained 16 percent so far in 2009 but has still failed to
top its all-time peak of $1,030 an ounce struck last year.
Trade was sluggish and volumes are on the lower side in
Asia with Japan shut until Thursday for holidays. Markets in
Singapore, India, Indonesia, Malaysia and the Philippines were
also shut on Monday for holidays.
The MSCI index of Asia Pacific stocks traded outside Japan
<.MIAPJ0000PUS> dipped 0.3 percent, after surging 80 percent
since mid-March when global markets started to rally on hopes
that the financial crisis had bottomed out.
This has taken price-earnings multiples on a 12-month
forward basis to above 15.2 times, near this year's high of
15.5 struck in early August, according to data from global
estimates tracker Thomson Reuters I/B/E/S.
"Valuations are certainly more expensive than they have
been, but we don't think alarmingly so," said Mark Konyn, who
oversees about $11 billion as Asia-Pacific chief executive of
RCM, a unit of Allianz Global Investors.
Fund managers expect Asian corporates to report an
improvement in financial performances and said the overall tone
in the market would remain positive.
"The macro environment has stabilised. We expect Asian
corporate earnings to make a comeback quite well," said
Victoria Ip-Cheung, head of fixed income at MFC Global
Investment Management, which has $250 billion assets under
management.
While stock markets in the region would increasingly factor
in this improvement, some saw changes in investment themes.
"Investors have positioned themselves away from some of the
China themes and more to themes aimed at recovery in the U.S.,"
Konyn said.
U.S. markets ended modestly higher on Friday on optimism
that the global economic recovery will be strong enough to
boost corporate profits and justify higher share valuations.
[]
The U.S. Federal Reserve is expected to keep the benchmark
interest rate unchanged in a range of zero to 0.25 percent at
the end of a two-day meeting on Wednesday as it waits to see if
a tentative recovery finds solid footing.
Primary debt dealers surveyed by Reuters expect the Fed
will not start raising rates until next year for fear of
derailing the recovery. Many see a one-in-five chance of a
"double-dip" recession, in which an economy sinks back into
recession after a brief rebound. []
Investors will also be eyeing a meeting of leaders from the
Group of 20 developed and emerging nations on Sept 24-25.
The leaders are expected to reiterate that economic support
measures will remain in place as long as needed, even as they
look beyond crisis fighting to issues such as bankers' bonuses,
financial regulation and global trade imbalances.
[]
CHINA EYES IPOs
Highlighting investor skittishness, shares in Shanghai
<> fell more than 3 percent at one point before edging
back into positive territory by late afternoon.
The decline was sparked by concerns about a sharp increase
in shares from upcoming IPOs and amid worries the recent gains
may be overdone.
Analysts said subscriptions for 10 companies to be listed
on China's Nasdaq-style market to fund high-growth start-ups
had come faster than expected and could lead to a mild
consolidation for the index. [].
South Korean stocks also eased 0.3 percent after a
four-session gaining streak with foreigners piling into the
country's markets ahead of South Korea's upgrade to developed
market status by FTSE effective Monday.
The Korea Composite Stock Price Index <> (KOSPI) was
down 0.25 percent after dropping 0.5 percent to the day's low
in early trade.
Foreigners have been net buyers on all but two days this
month, bringing in $4.1 billion in the last 11 sessions.
"Foreign investors' buying has slowed following their
aggressive accumulation of Seoul shares prior to South Korea's
official joining of the FTSE," said Chung Seung-jae, a market
analyst at Mirae Asset Securities.
The won currency was lifted by these inflows, rising to
1,199.9 per dollar, the highest since Oct. 14, 2008.
Still, valuations in South Koreana stocks look relatively
attractive.
The KOSPI's price multiple based on 12-month forward
earnings estimates was about 9.7 as of Sept 18, compared with
the region's multiple of over 15 times.
"Buying... could pick up after third-quarter earnings
figures if numbers come out strong," Chung added.
Australia's benchmark S&P/ASX 200 index <> dropped
0.34 percent, led lower by weak resources stocks which were in
turn depressed by softer commodity prices.
Oil prices <CLc1> eased below $72 a barrel as traders booked
profits after a 5 percent rally last week.
(Editing by Kim Coghill)
