By Jonathan Burgos - Aug 28, 2011 10:42 AM GMT+0700 Asian stocks, trading near the lowest valuations since December 2008, may rebound after Federal Reserve Chairman Ben S. Bernanke said the U.S. economy is recovering, albeit at a slower pace, and the central bank has additional means to shore up growth if appropriate.
While the slumping housing market and financial-market volatility still pose challenges for the economy, Bernanke said that his view of the long-term outlook is “more optimistic.” The central bank will hold a two-day policy meeting starting Sept. 20 to “allow a fuller discussion” of the slowing economy and the central bank’s possible policy response, he said. Extending next month’s policy meeting to two days stoked speculation the extra time may allow Bernanke to forge a stronger consensus on monetary policy. The MSCI Asia Pacific Index declined 13 percent this year through Aug. 26. Valuations on the gauge fell to an average 11.8 times estimated earnings on Aug. 22. That’s the lowest since December 2008 when equity markets tumbled as the global recession deepened amid a credit crunch that followed the collapse of Lehman Brothers Holdings Ltd. in September 2008. http://www.bloomberg.com/news/2011-08-28/asian-stocks-may-rebound-as-bernanke-sounds-more-confident-note-on-economy.html '+'
