Bank of America's global Fund Manager Survey showed investors turned bullish on euro zone equities, flipping their allocation to a 4% net overweight position in January from a 10% net underweight in December.

Fund managers also moved into emerging market stocks, increasing their net overweight to 26%, the highest since June 2021.

The survey also showed yen appreciation expectations at their highest level since January 2007, the month before the Bank of Japan last raised its base interest rate. The BoJ meets on Wednesday and expectations have risen that the central bank could soon change its interest policy.

Global growth optimism hit a one-year high, while inflation expectations have peaked, according to the survey of fund managers who have combined assets under management of $772 billion.

(Reporting by Samuel Indyk; Editing by Dhara Ranasinghe)