Asia Pacific Issuers Shift Toward Euro Funding Amid U.S. Policy Uncertainty

A notable shift in financing patterns is emerging across the Asia Pacific as uncertainty over U.S. economic policy pushes borrowers to diversify away from the U.S. dollar. Bloomberg data (7 Dec) shows that euro-denominated bond issuance by Asian corporates and governments has surged—its share rising 6 percentage points to 23% of all cross-currency issuance this year. Total euro issuance in 2025 reached €86.4 billion (about US$100.7 billion), up 75%, with several Asian deals becoming among the most sought-after in Europe. While dollar issuance from Asia is still up 29% this year, its dominance is eroding as a weaker dollar—down 11% against the euro—makes European funding increasingly attractive. HSBC’s Daniel Kim notes that Asian issuers are now actively diversifying funding sources to reduce reliance on the greenback, driven by strategic considerations rather than mere refinancing needs. Analysts point to growing signs of de-dollarization, supported by cheaper funding costs in Europe, with the euro-to-dollar swap premium falling to a five-year low of 3.1 bps. Political pressure from U.S. President Donald Trump on the Federal Reserve and shifting trade policies have further shaken confidence in the dollar, prompting global portfolios—including those in Asia—to rotate into euro assets. Despite this shift, the dollar remains dominant, representing 63% of global bond issuance as of June 2025, compared with the euro’s 25%, according to BIS data. Economists view the rise in euro demand as a normalization after years of heavy dollar dependence. The trend is expected to accelerate, with Deutsche Bank forecasting Asia’s euro bond issuance to climb to US$125 billion in 2026, a jump of more than 20%.

https://internasional.kontan.co.id/news/asia-perbesar-porsi-utang-dalam-euro

China Extends Gold-Buying Streak to 13 Months in November

China increased its gold reserves for the 13th consecutive month in November, raising holdings to 74.12 million fine troy ounces, up from 74.09 million in October. According to data from the People’s Bank of China released Sunday, the value of these reserves climbed to US$310.65 billion, compared with US$297.21 billion the previous month. The sustained accumulation highlights Beijing’s continued diversification away from the U.S. dollar and its strategy to strengthen financial resilience. Despite China’s ongoing purchases, spot gold prices slipped slightly. On Friday, December 5, 2025, gold closed at US$4,197.78 per ounce, down 0.23% from the previous day. Market participants continue to watch China’s steady gold-buying pattern, which has become a significant driver of global bullion demand amid shifting geopolitical and monetary dynamics.

https://internasional.kontan.co.id/news/china-tambah-cadangan-emas-november-2025-nilainya-mencapai-us-31065-miliar#google_vignette

India Plans No New Coal Power Capacity Beyond 2035

India has no plans to expand its coal-fired power generation capacity after 2035, according to senior Energy Ministry officials. Energy Secretary Pankaj Agarwal told Reuters that the government aims to secure the nation’s energy needs, targeting 307 GW of coal power capacity by 2035, but noted it is still too early to determine policy directions beyond that year. Earlier, India laid out plans to boost coal capacity by 46% from the current 210 GW while simultaneously expanding non-fossil energy capacity to 500 GW by 2030, aligning coal expansion with rising national energy demand. India continues to face grid stability challenges due to the growing integration of clean energy, leading to power output reductions during much of the year. Agarwal said decisions on coal expansion post-2035 will depend on electricity demand growth and the pace of clean energy integration over the next three years. While coal power output has declined in seven of the first eleven months of the year—its steepest drop since 2020—utilities are still signing long-term contracts with coal-based power producers to prepare for rising nighttime electricity demand and ensure system reliability.

https://internasional.kontan.co.id/news/india-tak-tambah-kapasitas-batu-bara-setelah-2035