BlackRock is boosting holdings of Indian and Chinese corporate debt, betting that falling oil costs and government policy changes will spur growth in Asia's two biggest developing economies. The Asian credit team of the world's largest asset manager is bullish on the region's dollar-denominated notes because their valuations are attractive versus the US and Europe, according to Neeraj Seth, the head of the unit. Asian corporate bonds yield 302 basis points more than Treasuries, compared with spreads of 130 for companies in the US and 89 for Europe, JPMorgan Chase and Bank of America Merrill Lynch indexes show. "Asian credit is very well placed for 2015," Seth, who co-manages Asia's best-performing bond fund, said. "I am a strong believer that in China, India and to some extent Indonesia, you will continue to see reforms in the coming years, which are very important for unlocking long-term growth rates." The 46 per cent plunge in oil prices in the past 12 months has improved trade balances across most of Asia, making the region less vulnerable to capital outflows as the US prepares to raise interest rates. BlackRock oversees US$4.65 trillion in assets globally. Its US$955 million Asian Tiger Bond Fund, managed by Seth and Joel Kim in Singapore, returned 9.4 per cent in the past year. Seth's team is underweight Malaysia as the oil-exporting nation's trade and fiscal balances will face some deterioration amid the drop in crude. Chinese policymakers are trying to balance the need to cushion an economic slowdown with monetary and fiscal stimulus. The nation is loosening control of its currency and financial markets to lure foreign investment and increase global use of the yuan. "I don't really expect to see a hard landing or an abrupt slowdown in the near term in China," Seth said. "Policymakers are trying to create a gliding path for that slowdown. The government does have the means and resources to actually manage the slowdown."