The investment banking division of Barclays Bank, Barclays Capital, has claimed the foundations of a bottom in the global business cycle appear to be in place, suggesting a turn for the better in economic news over the next three to six months.

In its quarterly research publication, 'Global Outlook: Green Shoots Have Arrived' it urges Asian investors to position themselves more aggressively in select regions and asset classes.

The research document said the recovery was now underway in emerging Asia, signalling the start of a six to nine month period during which most economies around the world bottom out and begin to recover.

After emerging Asia, the next region for a recovery is likely to be the US, because the downturn of the last 6-9 months means manufacturing output is well below demand, which could lead to a quick reversal.

It main a number of recommendations to investors which included making sure they are overweight investment grade credit, with a focus on bank debt, which is trading at an all-time high premium over non-financial debt. Other suggestions called for some exposure to equities in pro-cyclical sectors such as industrials, energy and materials. In financials, preferred debt is still recommended over equities, and also exposure to cyclical currencies such as the Australian dollar should be considered as rallies in the dollar and yen end.

Larry Kantor, head of research at Barclays Capital, said: "We believe that the recent rally in financial markets signifies an inflection point. Expectations have been driven down to extremes, and the beginnings of a global economic recovery are evident. As a result, we are recommending that investors become more aggressive and take risk over a broader range of assets."