Hedge funds upped their purchases of stocks in a number of Asian emerging markets including China Korea, Taiwan and India, in the week ending 15 February, just ahead of a cut in China's benchmark mortgage rate, according to a report by Reuters.

The report cites a note published by Goldman Sachs on Friday as revealing that Asia was the most net bought region by hedge funds tracked by the banks prime brokerage division.

On Tuesday, China's central bank made its largest ever reduction in the the country's benchmark mortgage rate, with the five-year loan prime rate falling from 4.20% to 3.95%, in a move aimed at reviving the country's ailing property market which remains a key drag on the country's economy.

According to Goldman's note, the hedge fund trades were made up almost entirely of long positions and marked a fourth straight week of net buying for the region.