A warning from home carrier Singapore Airlines that ticket prices were coming under pressure as costs are also rising sent its shares down nearly 10% on Wednesday, casting a shadow over the Singapore Airshow. It underscored broader aviation industry concerns about supply chain constraints and a more cautious outlook in Asia as China's international travel recovers from the pandemic at a slower pace than in much of the rest of the world. As Airbus, Boeing, and COMAC of China looked to seal aircraft purchase deals at Asia's biggest aviation gathering, Singapore Airlines said on Tuesday that high fuel prices, inflationary pressures and supply chain constraints were presenting challenges to airlines globally.
As Japanese stocks approach record levels last seen in the 1989 bubble-era, valuation metrics suggest they are still far from overpriced compared to historic levels and global peers. "From a historical perspective, Japanese stocks at a forward price-to-earnings ratio of 15x do not look expensive versus other markets, especially at current interest rate levels," said Miyuki Kashima, head of Japan investments at Fidelity International. More importantly, Japanese stocks trade at a low price-to-book value, meaning the shares are underpriced relative to the value of assets on companies' balance sheets.
