Asian stocks moved near three week lows on Monday after weaker-than-expected US jobs data revived concern on the recovery of the world's largest economy. Investors grew cautious, ahead of the third-quarter corporate results season. While earnings prospects for Asian companies, who thrive on domestic demand, remains favorable, the current concerns revolve more around exporters, particularly those to the US. WMR's equity team holds quite a constructive view on US equities. Overall economic outlook is indeed improving, though at times fraught with unfavorable data, and earnings prospects are clearly gaining momentum. On such a backdrop, we expect Asian exports to gradually gain feet which bode well for regional markets as a whole.
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