Stock markets are in the middle of a "very long bull" run bolstered by a "powerful, synchronised" recovery in global economic growth, JPMorgan Chase & Co.'s chief Asia and emerging-market strategist Adrian Mowat said.
"In the 22 years I have been covering markets, there's been a few years where you make substantial returns," Mowat said in a Bloomberg television interview today. "I think that's going to be the story in 2009 going into 2010."
The MSCI Asia Pacific Index has rallied 11% this year, after plunging 43% in 2008, on optimism stimulus spending in countries from the US to China will revive growth in the global economy.
Economic data will slightly surprise on the upside, which should lift markets, JPMorgan's Mowat said. When "we feel the world is very uncertain, the chances of being positively surprised is quite high."
The Bank of Japan raised today its view of the economy for the first time in almost three years on signs that a record contraction in the first quarter represented the worst of the recession. US President Barack Obama said on May 20 that the world's biggest economy is showing "some return of normalcy".
Still, the UK had the outlook on its AAA debt rating cut by Standard & Poor's yesterday, and Treasury yields rose on speculation the US's rating may also be under threat.
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