Morgan upbeat on Asian stocks

Morgan upbeat on Asian stocks

HONG KONG (Dow Jones): Morgan Stanley Dean Witter & Co. (MWD) remains bullish about Asian stocks and predicts a 30 percent rise in the Morgan Stanley Capital International index for Asia, excluding Japan, over the next year, the firm's Asian strategist said Thursday.

Morgan Stanley recommends being overweight in Hong Kong, China, South Korea, Singapore, India, Indonesia and Thailand. It recommends being underweight in the Philippines, Taiwan, Australia and New Zealand, said Ajay Kapur, Morgan Stanley's chief Asian strategist, based in Hong Kong.

He particularly expects very strong growth in Singapore and South Korea, based on a number of factors including increasing liquidity in their economies, reasonable share prices, strong global demand for exports, improving earnings and strengthening financial systems.