Foreigners have jumped back into Australian equities in   April, as Asian investors grapple with negative interest rate environments.
A survey of attendees at a recent Hong Kong investment conference said Australia, after India, was their most favoured market in the region, according to Credit Suisse. 
This shows a sharp turnaround in sentiment from the previous year's conference where Australian equities were the least favoured in the Asia-Pacific and investors thought Europe was the region to provide the greatest upside for equity investors.
"We've seen a recent bounce in commodity prices and investors may think we've reached the bottom," said David McDonald, chief investment strategist at Credit Suisse.
"Additionally, Australian yields are probably also attractive in this negative interest rate environment," said Mr McDonald. "Yields of 4.5 to 5 per cent on Australian equities are probably looking pretty good."
This finding coincides with Morgan Stanley data showing large inflows of foreign funds into the Australian market from emerging markets.
After four straight weeks of emerging market investment, capital has begun to to flow out.
Australia, the US and Britain reported the largest inflows relative to assets under management as $US1.51 billion ($1.98 billion) in active funds flowed out of the emerging markets.
A recent survey of global fund managers by Bank of America Merrill Lynch suggests investors are wary of "quantitative failure", recording a sharp drop in appetite for Japanese equities and eurozone banks and a steady rotation into cash and staples.
The bank's monthly global fund managers survey tracks the views of hundreds of fund managers who collectively have nearly $US500 billion under management.
The note released to clients on Tuesday points out a "low conviction" fear of quantitative failure. However, it revealed a jump in cash to 5.4 per cent in   April, up from 5.1 per cent in   March.
"Cash level is superficially bullish," reads the note. "But rare for cash to jump so much during risk rally." This suggests that investors are worried about the downside but don't see much opportunity on the upside.
Investors are suspicious of recent Japanese and European negative interest rate experiments and are underweight Japanese equities for the first time since   December 2012.
They have sold down on eurozone bank stocks, grappling with new regulations and the cost of hoarding cash.
About 21 per cent of surveyed participants say quantitative failure is the biggest tail risk facing global investors.