The cheaper valuations, however, cushion regional stock prices amid a turmoil in global equity markets, analysts said.
The MSCI Asia-Pacific index's forward 12-month P/E ratio stood at 13.12 at end-February, the lowest since the onset of the pandemic, against the MSCI World index's P/E of 16.49, Refinitiv data showed.
Graphic: MSCI Asia-Pacific and World index's PE:
"That (low valuations) provides some support to Asian equities," said Herald van der Linde, head of equity strategy, Asia Pacific, at HSBC.
The MSCI Asia-Pacific index lost just 1.3% last month while the MSCI World index faced a sharper fall of 2.7%.
"And we have seen bond yields come down, as the market prices in fewer rate hikes in the U.S., given recent events."
Fed Chair Jerome Powell said on Wednesday that the central bank would begin "carefully" raising rates from this month, while keeping a close eye on inflation and developments in Ukraine.
Valuations of Hong Kong shares were the cheapest in the region with P/E ratio dipping to 9.87 as a surge in COVID-19 cases in the financial hub and uncertainties over its coronavirus strategy spread alarm.
South Korea and China had P/E ratios of 10.01 and 10.04, respectively. India, Thailand, and Indonesia topped regional valuations with P/E ratios of 19.36, 17.01 and 16.57 respectively.
Graphic: Valuation of Asia-Pacific equities:
"In addition to attractive valuation vs. the developed markets, Asia presents better macro stability buffers, a lower starting point for the oil burden as well as fiscal room to respond compared to previous geopolitical tensions," said Zhikai Chen, head of Asian Equities at BNP Paribas Asset Management.
"The risk we monitor closely is whether the prolonged and increased tensions may challenge the capex cycle and weaken trade momentum," BNP Paribas's Chen said.
However, some analysts remained sceptical of a near-term recovery in Asian equities.
"I would not expect a recovery even with the low valuations," said Alicia Garcia Herrero, chief Asia Pacific economist at investment manager Natixis.
"This is particularly the case of China as the fiscal stimulus remains limited and the regulatory crackdown continues (Alibaba/Meituan/etc)."
Graphic: Breakdown by sector for Asia-Pacific equities' valuations: https://fingfx.thomsonreuters.com/gfx/mkt/lgpdwaoykvo/Breakdown%20by%20sector%20for%20Asia-Pacific%20equities'%20valuations.jpg
(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Sherry Jacob-Phillips)
By Gaurav Dogra