April 4 (Bloomberg) -- Asian stocks may outperform those in Latin America this year, helped by faster economic growth in countries such as China and South Korea, said Mark Mobius, of Templeton Asset Management Ltd., who oversees $22 billion of emerging market stocks.

``One of the problems in Latin America is that the growth rate in the economies has not been as fast as in Asia,'' Mobius, 69, said in an interview in Sao Paulo. ``The reason for that is the governments' policies.''

Asia's emerging market growth may double that of Latin America this year. The International Monetary Fund's estimate for growth in Asia, excluding Japan, may be increased to 8.0 percent from 6.9 percent, according to a presentation by the fund's Asia and Pacific department yesterday. That compares with a 4.1 percent expansion in Latin America, according to forecasts by the United Nations' Economic Commission for Latin America and the Caribbean.

The Morgan Stanley Capital International Asian region index is up 12 percent this year, heading to a fourth yearly increase.

Korea's Samsung Electronics Co. is the largest holding in the Templeton Emerging Markets Fund, which rose 31 percent last year and is one of 29 funds Mobius oversees. South Korea has the largest weighting in that fund, at more than 20 percent, followed by Taiwan and Brazil, Bloomberg data shows.

Four-Year Rise

The Morgan Stanley index of Latin American stocks has risen 19 percent this year, heading toward a fourth-straight annual gain, which would be the longest streak since the index was created in 1988. There may be further gains for some Latin stocks, Mobius said.

``If you look at the two main countries, Mexico and Brazil you'll find lots of great companies with very fast earnings growth,'' he said. ``There's a chance that these markets could still keep on moving ahead.''

Elections across Latin America may bring some volatility to share prices. In Brazil and Mexico, politics are unlikely to erode prospects for stocks, he said.

Argentina, Bolivia and Peru are ``question marks,'' he said. ``Argentina is a question mark because the current government has not being doing too well from the view point of price controls and other controls which are not good for the economy long-term.''

In other emerging markets, he said, there may be opportunities in Poland, where stocks have fallen, and in Russia and South Africa.

Buying

``We are still finding a lot of things to buy, despite the fact that prices have gone up so much,'' Mobius said.

Emerging markets extended their winning streak versus developed markets to a seventh quarter in the three-month period ending March 31.

The Morgan Stanley International Emerging Markets Index, a dollar-denominated gauge of 26 markets in Asia, Latin America, Eastern Europe, the Middle East and Africa, gained 12 percent in the quarter, exceeding the 6.1 percent increase in the MSCI World Index, tracking 23 markets in North America, Europe and Asia.

Mobius said he sees potential in Brazilian banking companies such as Banco Bradesco SA and natural resource companies such as iron miner Cia. Vale do Rio Doce and state- controlled oil company Petroleo Brasileiro SA.

``Provided the government continues to allow to be run professionally and provided the government gradually lifts restrictions on pricing, then the company should do very well,'' he said of Petrobras.

To contact the reporter for this story: Telma Marotto in Sao Paulo at at tmarotto1@ @bloomberg.net; Carol Massar in New York at at cmassar@bloomberg.net

Last Updated: April 4, 2006 11:57 EDT