Most other regional markets saw a rise in valuations over the past month, thanks to some easing U.S-China trade tensions and rate cuts by major central banks.

A corporate tax cut announced by India's finance minister last month to boost manufacturing and revive its weakening economy propelled Indian shares higher.

As of Wednesday, their P/E valuations increased to 16.42 from 15.98 a month earlier. Indian equities benchmark Nifty rose 4.1% last month.

Malaysia's price-to-earnings ratio was 15.66, second highest in Asia, even though their shares registered a 1.75% decline in September.

"Despite the falling market in recent months,(FTSE Bursa Malaysia index's) valuations have not improved because forward earnings estimates have collapsed: earnings are now expected to contract by 4% against a 1% contraction as of end June." said brokerage Jefferies in a report on Tuesday.

MSCI's broadest index of Asia-Pacific shares <.MIAP00000PUS> gained 2.13% during September and its forward 12-month price-to-earnings ratio rose to a five-month high of 13.14 times at the end of last month. The August level was 12.78.

China, Hong Kong and South Korea were the lowest-cost shares in the region, with P/E multiples of about 11 or less, according to Refinitiv.

Regional shares still trade at a slight discount to their global peers, the data showed.

Graphic: Valuation of Asian equities https://fingfx.thomsonreuters.com/gfx/mkt/12/6876/6807/Valuation%20of%20Asian%20equities.jpg

Graphic: MSCI Asia and World forward PE https://fingfx.thomsonreuters.com/gfx/mkt/12/6877/6808/MSCI%20Asia%20and%20World%20forward%20PE.jpg

(Reporting by Gaurav Dogra and Patturaja Murugbaoopathy in Bengaluru; Editing by Richard Borsuk)