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Asia stocks to add to gains, say banks, fund managers

Lower valuations, rebalancing to benefit regional equities

SINGAPORE (Nikkei Markets) -- Asian stocks are likely to continue their rally in 2018, albeit at a slower pace, helped by double-digit earnings growth at home and the synchronized expansion in major economies.

Many banks and fund managers of this view said developing Asia remains relatively cheap in valuation terms compared to developed economies. A shift in asset allocation away from bonds and U.S. stocks towards Asian equities will also help regional markets, they added.

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