SINGAPORE, April 20 (IFR) - Sentiment in Asian markets improved today, providing a fillip to stocks and stemming a widening in regional credits.
The Hang Seng index rose 0.8% and the Shanghai Composite edged 0.06% higher. Asian credit spreads were flat, with the iTraxx Asia IG index at 103bp/104bp.
But the improved sentiment did not translate into gains for new issues.
"New issues are stagnant today, but at least they have stopped widening," said one trader.
Korea Resources' new 2022s were stuck in a range of 131bp/128bp over Treasuries, slightly out from reoffer of 130bp but tighter than the 134bp seen at one point yesterday.
Cagamas's 2022s were at 119bp/116bp, marginally tightening from 120bp seen this morning, but still above reoffer spread of 115bp.
News that Jakarta's incumbent governor Basuki Tjahaja Purnama had lost his bid for re-election had minimal impact on the Indonesian sovereign's cash bonds, although the rupiah fell 0.26% on the news.
Instead, the Republic of Indonesia's 10-year bonds rose three-eighths of a point while longer-dated bonds were five-eighths higher.
The RoI 3.7% 2027s were seen at bids of 104.36 while the 2047s were at 108.06.
Reporting by Kit Yin Boey; Editing by Vincent Baby