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The head of Templeton Asset Management says there is a lot of life left in the stock markets of developing nations, even after some triple digit returns this year.

Chairman Mark Mobius told Bloomberg news Wednesday that stocks in Brazil, Russia, India and China are likely to rise by 30 to 40 per cent within three to four years.

They are well positioned against western markets because they boast higher economic growth and lower government debt which should spur corporate earnings, he said.

"BRIC countries are really at the top" of our favourite holdings, Mobius told Bloomberg's Seda Sezer in Istanbul, adding that he's increasing holdings in all emerging markets, with particular focus on the four biggest developing-nation economies collectively known as the BRIC nations.

He recommended buying on any "violent correction" that could occur.

Stocks of companies in developing nations have more than doubled from their low point in March and gained three times more this year than the U.S. S&P 500 Index.

Part of those gains have come from sophisticated investors borrowing U.S. currency at low rates and pouring it into developing markets for big gains, sparking fears among many economists that a new asset bubble is in the making.