* Graphic: World FX rates http://tmsnrt.rs/2egbfVh
* Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3f2vwbA
* High U.S. yields, valuations stoke correction fears-
strategist
* Singapore banking stocks jump after OCBC results
* MSCI's Asia-Pacific ex-Japan index slides nearly 2%
By Rashmi Ashok
Feb 24 (Reuters) - Most Asian equities shed early gains to
fall on Wednesday as persistent worries over steep asset
valuations and the recent strength in U.S. Treasury yields hit
risk sentiment, with local bond yields clinging to multi-month
highs.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS deepened losses with a near 2% drop, while
high-flying technology stocks in South Korea .KS11 and Taiwan
.TWII were among the region's biggest decliners.
Sentiment in Philippines took a further hit, with stocks
.PSI down nearly 1%, as COVID-19 restrictions were extended in
the capital earlier this week.
Elsewhere, U.S. Federal Reserve Chairman Jerome Powell
soothed inflation concerns and reiterated an accommodative
policy stance in an overnight speech, but did not address
potential risks from rising bond yields. "I think Chair Powell did as much as he could in terms of
dampening down on expectations of tapering, without introducing
new steps. The reality is that the market is nervous
regardless," said Mitul Kotecha, a strategist at TD Securities.
Higher U.S. real yields and "froth" in some sectors were
fuelling concerns of a deeper correction, he said.
So far this year, the Asia-ex Japan index has risen more
than 7%, building on a 20% surge in 2020.
Asian bond yields inched down in line with U.S. yields after
Powell's comments but hovered near multi-month highs scaled
recently.
"The Asian local currency bond market picture looks
precarious at present, largely due to the sharp back up in U.S.
Treasury yields. This is likely to weigh on foreign bond
portfolio inflows in the weeks ahead," Kotecha noted.
Bucking the trend, Singapore stocks .STI rose 1.2% after
Oversea-Chinese Banking Corp OCBC.SI reported a
smaller-than-expected decline in quarterly profit, boosting
local bank shares DBSM.SI UOBH.SI and sending OCBC's stock
2.3% higher. nL1N2KT3HA]
In the Philippines, food and beverage maker Universal Robina
URC.PS fell 2%, while restaurant operator Jollibee Foods Corp
JFC.PS shed 2.9%.
HIGHLIGHTS
** Top gainers on FTSE Bursa Malaysia Kl Index .KLSE
include PETRONAS Chemicals Group Bhd PCGB.KL , up 3.33%, and
Press Metal Aluminium Holdings Bhd PMET.KL , up 2.06%
** Indonesian 10-year benchmark yields are down 9.8 basis
points at 6.551% while 3-year benchmark yields are down 1
basis point at 5.298%
** Top losers on the Jakarta stock index .JKSE include
Planet Properindo Jaya PT PLAN.JK down 9.32% and Tira
Austenite Tbk PT TIRA.JK down 6.98%
Asia stock indexes and
currencies at 0639 GMT
COUNTRY FX RIC FX FX INDE STOCKS STOCK
DAILY YTD % X DAILY S YTD
% % %
Japan JPY= -0.24 -2.13 <.N2 -1.61 8.12
25>
China
(Editing by Devika Syamnath)