SINGAPORE, Jan 12 (IFR) - Asian credits were stable with fresh issues rallying in line with regional equity markets, which hit new 11-week highs.
A weakening of the US dollar saw the MSCI's broadest index of Asia-Pacific shares outside Japan surge 6% to its highest level since late October, according to Reuters.
However, stocks were showing signs of weakness in the afternoon as the Shanghai Composite eased 0.5% and the Hang Seng index slipped 0.5%.
Asian credit spreads remained steady and broadly unchanged from yesterday. The iTraxx Asia investment-grade index was indicated at 116bp/118bp.
Taikung Insurance's 2022s grabbed market attention in rallying in the early afternoon to 157bp/155bp over US Treasuries - the tightest for the day. The notes had priced at 168bp yesterday.
The positive sentiment spilled into Adani Port's 2022s, which had priced at 215bp yesterday. The new notes tightened to 210bp earlier, but widened slightly to 215bp/213bp in the afternoon.
Standard Chartered's AT1 saw little trade as traders waited for Europe to open for more activities to emerge. The 7.75% notes were stuck around 99.5/100, close to reoffer price at par.
The new issues took some shine off other bonds that had priced recently. New World China's 2027s were less actively traded, but remained strong with quotes at 225bp/223bp, well below reoffer price at 237bp.
"There are a lot of new issues out there and, today, we are just starting to see a touch of weakness in the secondary market so far this week," said one trader.
"The credits are not going wider, but (its) just that we need to see how much new supply there will be these two weeks.
Every issuer is trying to hit the market before the last week of January, when the impact of the Lunar New Year holidays will seep in."
Reporting by Kit Yin Boey; editing by Dharsan Singh