Hong Kong banks may increase the interest rates they charge on mortgages as the city’s new risk rule pushes up funding costs, said Benjamin Hung, chief executive officer for the city at Standard Chartered Plc.
Chinese regulators expanded a program allowing institutions to raise yuan offshore for investment in the mainland, a step that moves the nation closer to a freely traded currency and may bolster confidence in the stock market.
Yuan loans in Hong Kong may triple this year as the currency becomes more globally accepted in trade and finance, according to Bank of Communications Ltd., China’s fifth-largest lender by market value.
The euro remained stronger against the majority of its most-traded counterparts as lawmakers in Slovakia, the only member of the euro area that hasn’t ratified a retooled bailout fund, may pass it this week.
South Korea’s won rose to a two-week high after German and French leaders pledged to stem a European debt crisis that’s bolstered the dollar and curbed demand for higher-yielding assets. Government bonds advanced.