JPMorgan favours Malaysia stocks for 2007

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HONG KONG, Nov 10 (Reuters) - Stock markets in China, Thailand, the Philippines, Taiwan and Malaysia are likely to produce double digit gains between now and the end of 2007, a top JP Morgan strategist said on Friday.

 

"The news flow will be that the U.S. economy is OK and that the Fed is on hold. It will allow us to focus on the pretty strong fundamentals that you've got in emerging markets. The result of that could be that markets run pretty hard."

 

India is the least attractive of the major Asian markets outside of Japan because its stocks are already trading at very expensive valuations, said Adrian Mowat, chief Asian and emerging markets equity strategist for the U.S. investment bank. "Our message for equity markets for the next year is still a very positive one. I think particularly for the next couple of quarters, we're in quite a sweet spot," Mowat told a media briefing in Hong Kong.