Shares in Singapore's leading banks enjoyed some of the region's biggest gains yesterday as encouraging quarterly figures added to hopes that the world's banking system might not need as much capital as forecast.
Banks led a broad rally across Asia, with the FTSE Asia-Pacific index advancing for a third successive session to its highest level since October.
But in Hong Kong, China Construction Bank retreated after reports that Bank of America was considering the sale of an $8bn stake in CCB within days to relieve pressure on its battered balance sheet. BoA will become free to divest about a third of its 16.7 per cent stake today after a lock-in period expires. CCB shares dropped as much as 4.4 per cent, although it narrowed the losses to 0.4 per cent to close at HK$4.75.