Shares in Japan closed at their highest level in nearly seven weeks, while world stocks also hit a five-week high and most Asian currencies also eked out gains after a decline in the dollar index

The downgrade to B2 from B1 came after the Chinese conglomerate said last week its units would sell a combined 60% stake in Nanjing Nangang Iron & Steel United for up to $2.2bn

Securities regulators recently asked fund managers to prevent an excessive proportion of institutional investors in money market funds. At least 20% must be invested in liquid assets.

Central bank unable to slow drop past key level, despite vow to buy 100 billion yen ($667 million) of state debt with 10-20 maturities plus another 100bn of bonds with maturities of 5-10 years

Cash has flown mostly out of the bond market, because of China's slowdown, but analysts say there are signs local money is being moved out as confidence in the country's outlook drops

"There is a need to make a quick move to attract more foreign investment into our treasury bond market," finance minister Choo Kyung-said.

Defaults among emerging market companies continued to mount in the third quarter, the US investment bank said, due to troubles in Russia as well as China's property sector.

The issuance of bonds in local Asian currencies has shot up to the largest in more than a decade as governments and borrowers avoid expensive US dollar debt

Many analysts believe things are set to get worse as tighter monetary policy across the globe raises the risks of a worldwide recession

Over a dozen bond funds announced measures to restrict new purchases on Friday, and around 40 short-term funds made similar statements in the past 20 trading days

China's outbound investment under the cross-border Bond Connect scheme totalled 301.5 billion yuan ($42.3 billion) at the end of August, up 34% from a month ago

This year's bond 'crash' threatens credit events and a liquidation of the world's most crowded trades, Bank of America warned.