According to the Swiss private bank, Asia will witness a moderate domestic growth, easing inflation and the outlook for global growth deteriorating and this will result in moderate monetary easing.

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Keeping this scenario Credit Suisse Private Banking division recommends to overweight equities and alternative investments and to underweight bonds and cash in 2012.

Credit Suisse Private Banking division continues to favour Asian equities and advises investors to diversify among carefully selected equities, credits and alternatives and focus on domestic demand and structural growth themes in Asia.

The bank stays overweight China, Hong Kong and Indonesia as they are "domestic driven markets with policy easing potential".

According to Fan Cheuk Wan, head of research Asia Pacific of Credit Suisse Private Banking division, austerity programs across the Eurozone and in the US will restrict global growth and increase political and market risks.

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"We recommend investors to stick to a defensive investment strategy and focus on domestic demand and structural growth themes in positioning in equities, credits and currencies in Asia," she added.

Equities will offer attractive positive returns for strategic investors in 2012, as current valuations have already factored in a recession while US earnings and margins are at record highs, both nominally and as a share of GDP.

"In 2012, investors should focus on quality stocks with strong balance sheets, brand-driven sales and high dividend yields. Within our global equity portfolio, we stay overweight Asian equities due to the region’s strong structural drivers, high fiscal flexibility, resilient economic growth and earnings performance and limited direct exposure to the Eurozone debt crisis. Asia stands out as a relative safe haven amid the global sovereign debt turmoil, supported by massive foreign exchange reserves, healthy balance of payments and robust national balance sheets," she adds.