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
"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)