According to the Merrill Lynch Survey of Fund Managers for April, the global economic optimism is at the highest level since 2004 and investor risk appetite has started to pick up on the back of improving global economic sentiment.
As much as 26 per cent of the fund managers said the global economy would strengthen in the next 12 months, up sharply from negative 24 per cent in January.
Interestingly, China continues to be a beacon of hope for the global economy with portfolio managers more optimistic on Chinese growth than any point since 2003,the report stated.
"Investors looking to play the global recovery are using China and emerging markets, rather than Europe or Japan, to do so," Banc of America Securities-Merrill Lynch Research co-headinternational investment strategy Michael Hartnett said.
A net 26 per cent of respondents believe Chinese economic growth would accelerate over the next 12 months, while till November about 85per cent expected it to decelerate.
Global emerging markets have been prime beneficiary of improving sentiment towards equities due to China's influence, which is indicated in a heavy increase by portfolio managers in exposure to emerging markets to 26 per cent from 4per cent previously.