China ranked second among investors as a good place to invest in the coming year: About a third endorsed the outlook for its markets, the best performance in more than two years.

The country’s economic growth accelerated for the first time in two years at the end of 2012 as government efforts to revive demand drove a rebound in industrial output, retail sales and the housing market. Gross domestic product rose 7.9 percent in the fourth quarter from a year earlier, up from 7.4 percent in the third.

Thirty five percent of those surveyed think that European Union markets will offer the worst returns over the coming year. That was down though from 41 percent in November and 62 percent in May.

Although a majority don’t believe recent gains in European bond markets signal the crisis is over, 44 percent disagree -- compared with 28 percent a year ago. Thirteen percent say they will increase exposure to the region’s sovereign debt in the next six months, almost double the November level. Fifteen percent say they will increase exposure to the euro in the next six months, up from 8 percent.

European Defaults

While 69 percent still see Greece as likely to default, that’s the smallest amount since September 2010. Thirty percent say Portugal won’t be able to pay its bills, almost half the rate of a year ago, and Spain is viewed as credit worthy by 68 percent, the most in a year. Only 12 percent say Ireland is likely to default and 17 percent say the same of Italy.

Spain today sold six-month bills today at 0.888 percent, a decline of almost half from the previous auction a month ago and the lowest rate paid since March.

Praise for taming the crisis has been handed to Draghi for devising an as-yet-untapped bond-buying program and Merkel for accepting a continued lifeline for Greece. Seventy two-percent view Draghi positively while optimism in Merkel’s policies rose to a record 64 percent as she seeks re-election.

“I am very confident in Germany’s ability to take the leadership role,” Anari said. “Angela Merkel is a very competent leader.”

By contrast, French President Francois Hollande’s program is viewed with pessimism by 76 percent and U.K. Prime Minister David Cameron’s rating declined to a low of 39 percent. International Monetary Fund Managing Director Christine Lagarde was regarded favorably by 59 percent.