Deutsche Bank's private banking arm sees Asia ex-Japan as an investment sweet spot, with a keen eye on South Korea, Taiwan and Indonesia, as economies stay in high gear and inflation unlikely to be a concern in 2010, according to a senior executive quoted by Reuters.

The firm, which began building up its exposure to risky assets in March and almost trebled the allocation from early this year to 56 per cent, said it was open to channelling more funds into equities if markets pulled back in the autumn, the news service said.

"Cash is not an asset class we like because interest rates across the world are low. Our strategy is to continue to increase risky assets," Christian Nolting, Deutsche Bank's Private Wealth Management's lead strategist for Asia Pacific, was quoted as saying.

Mr Nolting’s opinions chime with those of a number of strategists who have stated that any significant pullbacks in equities – as seasonally has often occurred in autumn – should be used as a trigger to put more money to work due to rising belief that the global economy is on the mend.

"Clients are more risk averse after the huge market downturn last year, but there is much liquidity still waiting on the sidelines," he said.

Mr Nolting said the private bank would put its 3 per cent cash holding into riskier assets in the event of a 10-15 per cent drop in the MSCI World Index of equities.