That move has coincided with a sell off in safe-haven bonds, with yields on benchmark 10-year Treasurys edging above 2 percent this week for the first time since early 2012.
The "Great Rotation" implies that long-term investors such as pension or insurance funds are starting to make a shift back into equities from holding heavy positions in the bond market where yields have fallen more than 250 basis points in the past five years as caution and fear prevailed following the global financial crisis.
(Read More: The Great Rotation: A Flight to Equities in 2013)
While confidence is returning to global markets, a "Great Rotation" into equities from bonds will only really get underway when the economic rebound in the U.S. becomes more pronounced and unemployment falls significantly, said Javelin Wealth Management CEO Stephen Davies.
"I think talk about the 'Great Rotation' has been massively overdone. I don't think we're going to see a massive switch out of fixed income into equities over the course of the year," Davies told CNBC Asia's "Squawk Box."
Key U.S. non-farm payrolls data due later on Friday may serve as a reminder that employment conditions in the world's biggest economy remain weak. The U.S. Federal Reserve has said its ultra-lose monetary policy will stay in place until unemployment falls below 6.5 percent.
Economists expect Friday's data to show the unemployment rate stayed unchanged in January at 7.8 percent.
Data earlier this week meanwhile showed the U.S. economy shrank 0.1 percent in the fourth quarter of last year, defying expectations for slow growth.
(Read More: Market Braces for a Blah Jobs Report as Firms Hold Back)
"Yes, we have seen a little bit of it (a rotation into stocks) because it's a reflection of yields that are at relatively low levels, so where else are you going to go?" said Davies.
Tim Condon, head of research for Asia at ING Financial Markets in Singapore, says he expects a gradual trickle of funds into stocks from fixed income markets.
"Maybe it's not a flood but there is a trickle of funds out of fixed income into equities. We've had 5 years of huge gains in fixed income and that is over," he said adding that ING forecasts the yield on 10-year Treasurys to creep up to 2.2 percent by the end of the year.