EMERGING MARKETS-Asian stocks fall on valuation concerns, high U.S. yields

    * Graphic: World FX rates tmsnrt.rs/2egbfVh
    * Graphic: Foreign flows into Asian stocks 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
 deepened losses with a near 2% drop, while
high-flying technology stocks in South Korea and Taiwan
 were among the region's biggest decliners.
    Sentiment in Philippines took a further hit, with stocks
 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 rose 1.2% after
Oversea-Chinese Banking Corp reported a
smaller-than-expected decline in quarterly profit, boosting
local bank shares and sending OCBC's stock
2.3% higher. nL1N2KT3HA]
    In the Philippines, food and beverage maker Universal Robina
 fell 2%, while restaurant operator Jollibee Foods Corp
 shed 2.9%.

    HIGHLIGHTS
    
    ** Top gainers on FTSE Bursa Malaysia Kl Index
include PETRONAS Chemicals Group Bhd, up 3.33%, and
Press Metal Aluminium Holdings Bhd, 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 include
Planet Properindo Jaya PT down 9.32% and Tira
Austenite Tbk PT 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               -0.24  -2.13  <.N2   -1.61   8.12
                                   25>           
 China    <CNY=CFX   +0.05  +1.04  <.SS   -2.40   2.19
          S>                       EC>           
 India               +0.22  +1.07  <.NS    0.77   6.00
                                   EI>           
 Indones             +0.04  -0.32  <.JK   -0.68   4.20
 ia                                SE>           
 Malaysi             +0.07  -0.47  <.KL    0.30  -3.54
 a                                 SE>           
 Philipp             -0.27  -1.44  <.PS   -0.86  -5.38
 ines                              I>            
 S.Korea  <KRW=KFT   -0.14  -2.34  <.KS   -2.45   4.23
          C>                       11>           
 Singapo             -0.03  +0.04  <.ST    1.16   2.83
 re                                I>            
 Taiwan              +1.63  +2.28  <.TW   -1.40  10.05
                                   II>           
 Thailan             +0.00  -0.20  <.SE   -0.67   2.84
 d                                 TI>           
  


 (Editing by Devika Syamnath)