Asia Pacific

malaysia’s largest banks, CIMB and Maybank, have each raised about M$1bn ($292m) of capital in the ringgit market, a clear sign that some Asian borrowers are turning to their home markets for funding amid the global financial turmoil.

Nomura Holdings, Japan’s biggest independent brokerage, is set to announce the purchase of Lehman Brothers’ Asian operations later today after winning a bidding war, EuroWeek has learned.

Barclays Capital provided a small glimmer of hope for the thousands of Lehman Brothers staff in Asia this morning, with the news that it may acquire some of the bankrupt firm’s Asian operations. But some warned that Lehman’s Asian capital markets business may not be Barcap’s number one priority.

Asia’s local currency markets, insulated from the US financial crisis but beset by their own problems, played host to a number of small ticket issues this week, chugging along in quiet defiance of the snowstorm burying issuers elsewhere in the region.

Asia’s financial markets were reeling on Tuesday as the full impact of the spectacular collapse of Lehman Brothers became clear.

Lehman’s worst mistake was to get its timing wrong — six months ago it might have been saved by Hank Paulson. But Bear Stearns and the US mortgage agencies used up the Treasury’s willpower and that left Lehman horribly exposed and alone.

Korea Development Bank pulled out of negotiations to buy a stake in embattled Lehman Brothers on Tuesday, sparking a week of intense activity amid concern over Lehman’s future.

• $3.9bn Q3 loss racked up after Alt-A hedging failure • $30bn plan to spin-off REI comes too late • Fannie and Freddie bailout euphoria wiped out Lehman Brothers was front, back and centre of events in the credit market this week and at the close in New York yesterday rumours gathered strength that Bank of America is poised to rescue the ailing investment bank.

China Construction Bank has closed its renminbi deal in Hong Kong, becoming the third Chinese borrower in as many months to tap the special administrative region to raise domestic funds. A fourth is going to follow soon, as Bank of China opens the books to its own deal.