Among Asian economies, China regained the top position as the 'most loved' market, pushing India down to second position in the region, while Thailand was placed at the third spot, it said.

Till November 24, the region recorded net inflow of USD 5.3 million and though all markets received positive flows, Taiwan and India received the major chunk of funds with inflows of USD 2.3 billion and USD 1.4 billion, respectively.

So far this year, the total FII inflows to Asian equities stood at USD 38.7 billion.

"We are overweight on Indonesia, China and India; and underweight on Hong Kong, Thailand, Malaysia and Philippines," HSBC said in a research note.

A sector-wise analysis shows that funds increased their holdings in industrials, materials and consumer discretionary, while they further cut exposure in consumer staples and utilities.

Funds were most underweight on telecom and financial sectors, the report said.

Meanwhile, mutual fund investors also looked bullish as they bought Asian equities worth USD 1.68 billion in the past four weeks ending November 19, according to funds tracking company EPFR Global.

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