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Thursday's big market sell off has created some new stock buying opportunities. In addition to Thursday's global sell off, the stock market in China and other Asian countries has underperformed other markets, and that has created some cheap stocks. The Asian companies below are trading at valuations that are very favorable in terms of risk vs. reward. These stocks have pulled back from their highs, and it could be a good time to start accumulating shares in these names.

These share have low P/E ratios, and strong balance sheets. In some cases, these stocks appear oversold. I am looking at the earnings power and the Relative Strength Index (RSI) levels which can indicate oversold conditions. Stocks with an RSI rating around 30 can signal that the shares are oversold and due for a rebound. To learn more about RSI, read here.

Here are the five companies:

Posco (NYSE:PKX) pulled back to $100.47 yesterday. The relative strength index is about 41. Posco is one of the leading steel companies in South Korea. These shares have fallen from a 52 week high of $125.97. The 50 day moving average is $106.03 and the 200 day moving average is $104.97. PKX earnings estimates are over $11.44 per share in 2011. This puts the P/E ratio at about 8 which is low for one of the leading steel companies. The balance sheet is strong and the book value is listed at $89.68.

Honda Motor Co. (NYSE:HMC) shares trade at just over $40 per share. The relative strength index is about 37 which indicates the stock is at oversold levels. This company manufactures a range of products from cars to generators. These shares traded as high as $44.56 in the past year. The 50 day moving average is $41.92 and the 200 day moving average is $35.86. HMC is estimated to earn $3.80 per share in 2011. This puts the P/E ratio at about 10.

Mizuho Financial Group, Inc. (NYSE:MFG) has pulled back to about $3.97. Mizuho is a leading bank in Japan The relative strength index is about 43. The 50 day moving average is $4.03 and the 200 day moving average is $3.41. MFG is estimated to earn about 50 cents per share this year. This puts the P/E ratio at about 8. The book value is reported at $4.99.

Mitsui & Co. Ltd. (OTCPK:MITSY) currently trades for about $350 per share. Mitsui is a major Japanese conglomerate. The relative strength index is about 41. These shares have fallen, from a 52 week high of $373. The 50 day moving average is $351.95 and the 200 day moving average is $303.85. MITSY has earnings estimates of about $50 per share for 2011. This puts the P/E ratio at about 7, well below the average market PE ratio.

Yingli Green Energy Holding Co., Ltd. (NYSE:YGE) was trading at $10.39 Thursday. Yingli is a solar company based in China. The relative strength index is about 33, which indicates this stock is oversold. These shares have a 52 week high of $14.29. The 50 day moving average is $11.44 and the 200 day moving average is $11.25. Estimates for YGE are about $1.61 per share in 2011. This puts the P/E ratio at about 7.

I suggest scaling into any positions over time. I think the pullback in these names represents a solid buying opportunity.

The data is sourced from Yahoo Finance. The information and data is believed to be accurate, but no guarantees or representations are made.

Source: 5 Asian Stock Bargains