Oct. 4 (Bloomberg) -- Goldman Sachs Group Inc. cut its forecast for earnings growth in Asia excluding Japan after lowering its outlook for global economic expansion.
Per-share earnings may grow 10 percent this year and increase 7 percent next year, lower than an earlier prediction of 11 percent growth for both years, Goldman Sachs analysts led by Timothy Moe wrote in a report today. The brokerage cut its global 2012 gross domestic product forecast to 3.5 percent from 4.2 percent.
Asia excluding Japan stocks face “downside risk” of 10 percent to 15 percent, the analysts wrote. They cut their 12- month forecast for the MSCI Asia Pacific excluding Japan Index to 480 from 530, according to the report.
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