Japan

Some of the largest funds in the IMA Global Emerging Markets and Asia Pacific ex Japan sectors have significantly increased exposure to Indian equities over 12 months to the end of January.

China's stock market has rebounded slightly on Tuesday after its worst day for 18 months, as the country's parliament begins its annual session.

EQUITY MARKETS

Asian stocks have rallied for the third day in a row, led by Japanese shares, as regional indices touch highs last seen in 2011.

Architas CIO Caspar Rock has increased his funds' weightings to equities - particularly Japan - in the expectation the momentum behind the recent move into risk assets will continue.

UBS Asset Management is to become the latest group to boost its passive fund offering in the UK, as it launches the first product in a new range for retail investors.

RED FLAGS

A US equity fund targeting the Japanese retail market has seen one of the largest subscriptions ever as domestic investors pile into overseas stocks on fears over the yen.

Hedge fund veteran George Soros has made $1bn betting against the yen since November, profiting from the Bank of Japan (BoJ)'s moves to weaken its currency.

Germany's GDP slumped by the most in four years in Q4 2012, with French, Italian and Japanese growth also contracting more than expected on the quarter.