CREDIT DEFAULT SWAPS CONTRACTS

Currency trading volume around the world has hit $4 trillion a day, fueled by investors in the wealthiest nations looking to diversify beyond their home markets in a time of economic turmoil.

Investors are growing more convinced that Argentina will meet its debt obligations over the next year and will struggle to keep up with payments in the following decade, trading in credit-default swaps shows.

Asian stock markets were mostly higher Wednesday on solid economic data from China and Australia. The Nikkei gained 1.2%, rebounding after touching a 16-month low.

Lafarge SA led a decline in the cost of insuring against default on European corporate bonds after it held onto its investment-grade credit rating and manufacturing in China grew at a faster pace than economists forecast.

Credit-default swaps on Lafarge SA dropped from the highest level since May 2009, falling 47.5 basis points to 341, according to data provider CMA. Moody’s Investors Service yesterday confirmed the world’s largest cement maker’s Baa3 credit rating.

The cost of protecting European corporate bonds from default fell, according to traders of credit-default swaps.

The cost of insuring Argentine bonds against default for 10 years compared with one year rose to a 22-month high of 206 basis points, or 2.06 percentage point, on Aug. 26, according to CMA Datavision.

Moody's Investors Service upgraded the credit rating of GateHouse Media Operating Inc., a publisher of community newspapers, by one notch on Tuesday, saying it's unlikely to default in the next 12 months.

European stocks finished up and well off their intraday lows, as better-than-expected U.S. economic data warmed sentiment in what had started out as a downbeat session for regional equity markets.

Asian stock markets declined Tuesday, with Japanese shares dropping 3.6% to finish at a fresh 16-month low.

The cost of insuring against losses on European corporate bonds rose, heading for the biggest monthly increase since May, on concern a slowdown in the U.S. recovery will trigger a global double-dip recession.

The cost of protecting European corporate bonds from default rose, according to traders of credit-default swaps.