The Markit iTraxx SovX Asia Pacific index, the region's first purely sovereign index, begins trading today as investors' focus turns to government debt. The index tracks credit default swaps on the debt of countries in the Asia-Pacific region, including China, Japan, South Korea and Australia. "This is a welcome addition. It will allow investors to play the sovereign index off against single names, which should increase liquidity," said Joseph Yiu, a credit trader at Westpac Banking.

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