HONG KONG, March 9 (IFR) - Asia credit markets weakened today as regional stocks took a hit from a slump in commodity prices and worse-than-expected economic data out of China.
Japan’s Nikkei average closed down 0.84%, while the Shanghai Composite Index lost 1.3%.
“China’s dismal export data weighed on investor sentiment. Oil price was another concern,” said a Singapore-based credit analyst, “Some took it as an opportunity for profit-taking after a strong rally in the past few weeks.”
An investment-grade trader in Hong Kong noted that overall credit spread widened moderately though there were some inflows for short-dated papers.
The iTraxx IG Index was quoted about 1bp wider at 150/152. Bank of China Hong Kong’s 2021s widened 3bp.
Vedanta Resources continued to be sold down after Moody’s downgraded the company’s credit rating due to weakness in commodity prices.
Vedanta’s 6.0% 2019s dropped further to 59.88 from 60.80 yesterday.
Moody’s cut its corporate family rating on Vedanta to B2 from Ba2 and its senior unsecured rating to Caa1 from B1. (firstname.lastname@example.org)