HONG KONG, July 14 (IFR) - Asian markets cheered news of a deal on Greece’s debt, with some equity markets up and a series of new bond issues.
The day saw a number of issuers announce plans for roadshows and others released price guidance for deals that were said to be imminent.
Syndicate bankers said issuers took advantage of a small window of opportunity after experiencing days of uncertainty over problems in China and Greece.
The hope is that the eurozone deal will bring some stability and clarity to the market, which will encourage more firms to issue.
“The Greek deal has brought some relief to the market and caused a little rally,” said an Asian investment grade bonds trader based in London. “Obviously there is a lot remaining in terms of implementation and execution that the market will focus on, but this could be a positive step forward.”
The increased activity translated into a solid day for investment grade and high yield names with yields moving tighter. The iTraxx Asia investment grade index was quoted slightly tighter at 107.83/109.17.
Equity markets broadly rallied across the region with the Nikkei 225 Index up over 2.0% while Australia’s S&P ASX 200 was up 1.90%.
Despite the better news coming out of Europe and solid gains experienced around Asian equity markets, problems persisted in China with the Shanghai exchange down 1.21% and the Hang Seng down 1% in Hong Kong.
However, the more volatile Shenzhen stock market was up 2% in the afternoon.