Adrian Mowat News
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Reliance Capital Asset Management Ltd., India’s second-biggest money manager, expects earnings at the nation’s biggest companies to expand more than 15 percent because of falling commodity prices and lower borrowing costs.
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India’s rupee headed for its worst month in a year on concern any reduction in bond-buying by the Federal Reserve will curb dollar supply, leaving the Asian currency vulnerable to a record current-account deficit.
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Indian stock-index futures gained, signaling benchmark indexes may rise a second day, before the government releases fourth-quarter economic growth data today.
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Indian stocks climbed, putting the benchmark index on course for the biggest monthly gain since November. Automakers rose after their earnings beat estimates and ahead of a government that may show economic expansion.
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Asian stocks rose, with the regional equities benchmark snapping a five-day losing streak, as a weakening yen boosted the earnings outlook for Japanese exporters and China Taiping Insurance Holdings Co. surged after saying it will buy its parent’s assets.
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Emerging-market stocks face fundamental headwinds as 2013 earnings revisions for most major “country sectors” are negative and growth in the four biggest economies is disappointing, according to JPMorgan Chase & Co.
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Most Hong Kong stocks fell, with an index of Chinese companies dropping for the first time in four days, as slower growth in industrial companies’ profits added to signs the world’s No. 2 economy is losing steam.
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JPMorgan Chase & Co. advised reducing Russian stock holdings as OAO Gazprom’s proposed dividend cut, falling oil prices and “policy stasis” in President Vladimir Putin’s government overshadow low valuations.
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U.S. dollars are a more attractive investment than developing-nation stocks trading at the lowest valuations since 2008 as Europe struggles to solve its debt crisis and China’s economy slows, said Adrian Mowat, JPMorgan Chase & Co.’s chief Asia and emerging-market strategist.
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Emerging-market stocks may enter a “significant correction” after they trailed developed-nation shares this year, according to JPMorgan & Chase Co.
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