SINGAPORE: Asian stocks may extend a rally next year after almost doubling since March as earnings improve, UBS AG said, adding to bullish forecasts on the region's equities by four brokerages this week.

The MSCI Asia excluding Japan Index may climb to 600 by the end of the year, UBS strategist Niall MacLeod said in a note yesterday. That's a 27-percent gain from Tuesday's close. Hong Kong and the Chinese mainland are the brokerage's top picks among the region's markets.

UBS joins BNP Paribas, Goldman Sachs Group Inc, Credit Suisse Group AG and Citigroup Inc in predicting gains of at least 9 percent for Asian equities in 2010 as the economic recovery gains pace. The MSCI Asian index has jumped 63 percent this year through Tuesday, set for its best rally since 1993.