SINGAPORE: Asian stocks outside of Japan may extend a bull market into 2010, helped by declining risk premiums, a recovery in economic and earnings growth, and low interest rates, according to JPMorgan Chase & Co.

The MSCI Asia-Pacific excluding Japan Index may climb to 530 by the end of next year, JPMorgan analysts led by Adrian Mowat wrote in a report yesterday, representing a gain of 29 percent.

The MSCI index rose 0.4 percent on Monday to 409.58, taking its gain this year to 66 percent amid speculation that the worst of the global recession has passed. The measure is poised for its best year since 1993, when it advanced 80 percent.