SINGAPORE, March 22 (IFR) - Risk-off sentiment took hold of Asian financial markets, leading to weaker equities and credits that were dragged down by overnight losses on Wall Street.
The iTraxx Asia investment-grade index was seen at 84bp/87bp, widening 1bp from yesterday.
The Hang Seng Index fell 1.3% while the Nikkei index was hit with a 2.1% loss.
Asian investment-grade bonds were 1bp-4bp wider, but demand remained steady as buyers moved in to pick up notes at softer prices.
“There is no dramatic weakening in the market really,” said one IG trader. “We are finding that bonds are still being cleared, which indicates buyers are out there.”
Shinhan Bank’s newly priced 2022s bucked the trend by tightening 2bp to 98bp from a reoffer spread of 100bp, reflecting the solid reputation of Korean FIG credits.
In contrast, high-yielding Sritex’s 2024s eased to 99.00/99.25 from a reoffer of 99.317.
“There are a few guys trying to exit the bonds but that is mainly due to the market sentiment and in line with the softness in the high-yield segment,” said one banker.
Evergrande 2020s were holding up at 100.9/101.0, still above reoffer at par, while the 2022s were seen at 100.5/100.8, above reoffer at par.
Reporting by Kit Yin Boey; Editing by Vincent Baby