Play the Reflation Trade

As March draws to a close, Asian stocks are set to mark their best month in over ten years as some investors bet the most painful stretch of earnings disappointments may be over.

South Korean shares rose over 13 percent in March -- its fastest pace since 2001, while the Shanghai Composite rebounded the most in the January-March quarter with a rise of over 30 percent.

Even with the run up in equities, the global economy continues to struggle and stimulus measures introduced by governments from the U.S. to China and Japan, have led investors to bank on reflation trades as a way to position themselves for a recovery.

"People are recognizing the fact (that), in terms of a recovery, it is a matter of when rather than if," said Joseph Poon, head of Macquarie Private Wealth Asia on CNBC Asia Pacific's Protect Your Wealth.

Reflation trades bet that a rebound in the global economy will reflate the value of all assets, drive up interest rates and commodity prices.

"Clearly, the reflation trade will take some time to bear fruit, so hence in balance sheets, it’s very important to carry us over this period. But in the longer run, you’re looking at...commodities, energy and some of the banks in the regional markets," Poon elaborated.

Regional and big national banks, particularly those in Asia, are seen as proxies for the global economic recovery. Poon is bullish on all major ASEAN banks, especially the top two in Singapore like DBS Group.

"In Asia, where the securitized market is not as well developed as overseas...most of the activity that you see through an economy actually flows through the banks," he explained.

Gold also tops Poon's list, as the precious metal is poised to benefit from the reflationary trend.

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Catch "Protect Your Wealth" on CNBC's Asia Pacific network every Tuesday on "CNBC's Cash Flow," Wednesday on "Asia Squawk Box" and Thursday on "Capital Connection."