Confidence in China’s ability to weather global economic and financial turmoil is bolstering parts of Australia’s credit market, letting Fortescue Metals Group Ltd. sell the most junk bonds by a miner in five months.
China’s manufacturing growth slowed for a second month in January after the central bank raised interest rates and as millions of migrant workers returned to their villages before a Lunar New Year holiday.
China’s yuan is climbing the most in Asia as investors from UOB Asset Management Ltd. to Union Investment predict the world’s biggest foreign reserves will help the currency withstand the spreading debt crisis in Europe and tensions on the Korean peninsula.
China may ease tightening measures as the deepening European crisis threatens global growth, AMP Capital Investors and BNP Paribas said, while BofA Merrill Lynch Global Research predicted a delay in the yuan’s revaluation.
Goldman Sachs Group Inc. cut its growth forecast for China this year to 10.1 percent from 11.4 percent as government restrictions on lending and real estate slow expansion in the world’s fastest-growing major economy.