China Construction Bank Asia Corp. is marketing a sale of dollar-denominated bonds, testing demand for the nation’s bank debt after the cost of insuring similar notes jumped the most in Asia this year.
The weakening of China’s currency had already caused investors to hedge yuan structured products estimated by Morgan Stanley at $150 billion before today’s widening of the trading band threatened even greater volatility.
China’s weakest start to a year for investment growth since 2001 and unexpectedly slow industrial production add pressure for economic stimulus, just as Premier Li Keqiang signals he wants to avoid such a move.
The cost of insuring Malaysian debt against non-payment fell to the lowest level since June as talks between the U.S. and Russia over the latter’s military intervention in Crimea helped ease geopolitical risk.
Stocks rose, with a global benchmark index extending its longest rally since 2010, and copper gained after record lending in China boosted prospects for growth in Asia’s largest economy. Italian bonds climbed while gold and silver advanced along with natural gas.