Jan 10 Reuters Analysts raised 2023 earnings estimates for Asian companies over the past month, contrasting with the raft of earnings downgrades in the last year, as China39;s reopening and slowing inflationary pressures boost optimism.

MSCI AsiaPacific39;s 2023 earnings estimates were raised by 2.5 over the past month, with China39;s earnings raised by 3.1, followed by Japan39;s 2.3.

By sector, analysts lifted consumer discretionary and industrials earnings by over 2 in the past month, while financials and tech companies were increased by 1.2 each.

After three years, mainland China reopened its borders to international passengers, which is expected to boost the tourism sector and revive faltering exports in the region.

Goldman Sachs raised Asia Pacific39;s 2023 profit growth estimate to 4 from 3, and 2024 growth to 14 from 12.

North Asia is likely to lead after ASEAN and India strengthened in 2022 as China markets rebound further and Korea anticipates recovery, the brokerage said on Monday.

Last year, analysts cut their forward 12month earnings by 7 as the region39;s revenues shrank due to China39;s stricter COVIDrestrictions and as higher product prices affected companies39; profit margins.

The MSCI AsiaPacific index dropped about 20 in 2022, the biggest yearly decline in 14 years. But, that has also made the region39;s stock valuations cheaper.

The forward 12month pricetoearnings ratioPE of MSCI AsiaPacific stood at 12.4, compared with the MSCI World39;s 14.5…