Turkey’s bond yields surged the most since October 2008 as investor speculation of a tapering in U.S. economic stimulus measures damped appetite for riskier assets. The lira headed for its lowest level to the dollar in a year.
China will probably widen the yuan’s trading band within the next three days after central bank Deputy Governor Yi Gang signaled policy makers will loosen control over the currency, according to UBS AG.
China’s currency had the biggest weekly gain in six months and yuan forwards rose to a record after the central bank signaled plans to widen a trading band that’s been limiting appreciation since October.
Hong Kong stocks rose, with the benchmark index snapping its longest losing streak in almost a year, as Morgan Stanley upgraded the outlook for Hong Kong stocks and amid speculation that the Chinese government may widen the yuan’s trading band within the next three days.
Chinese equities in New York climbed from the lowest level since September, led by gains in Spreadtrum Communications Inc., after Bank of America Corp. said rising smartphone use will boost Asian semiconductor makers.