China is showing signs of the biggest pick-up as the global economy takes tentative steps to recovery, and Goldman Sachs JBWere said investments should seek to take advantage of this turnaround. Head of asset management Stephen Walker told financial advisers at an Investment Store roadshow that BHP Billiton was a good company to hold, as it had greater penetration into the Chinese market with its copper and iron ore holdings. By contrast, Rio Tinto's major commodity, aluminium, didn't have the same foothold.

"China is still looking handsomely healthy," said Janine Starks, investment director at Liontamer.  "India and China are key sectors for leading us out of recession."

Earlier this week, AXA Global Investors said it had doubled its exposure to emerging nations as recent signs of recovery in China stoked appetites for high-yielding or riskier assets. Its head of investment strategy Keith Poore said Chinese growth had dimmed the risks associated with equity markets in emerging economies.

Hunter Hall chief executive David Buckland said he thought equities were still in a bear market rally, with the pick-up showing a decline in the global economy at a slower rate rather than an actual retracement. He predicts the current rally has another 10% to 15% to run before things settle down again.

Walker was more optimistic, although he couldn't tell whether equities were bullish or if they were experiencing a bear market rally.

"Global economic data is showing tentative signs of stabilisation," he said. "The green shoots are real, but the economy is still weak."