HONG KONG, July 22 (IFR) - Both Asian credit and equities
markets got a lift today as the market responded to a
better-than-expected China MNI business sentiment index.
The index rose sharply for a fourth consecutive month to
58.2 in July from 55.0 in June. Hong Kong's Hang Seng Index
ended 1.69% higher, near its highest point for the year.
The business sentiment report offers the first glimpse of
Chinese data for July, suggesting third-quarter growth has
started on a strong footing, according to Nomura. Strong
activity data in June and higher-than-expected second-quarter
GDP growth suggest that growth momentum has improved.
The Asian credit markets also benefitted to some extent from
fund flows moving out of Europe in the wake of the downed
Malaysian Airlines jet.
China high-grade bonds were well bid, while bonds from other
Asian countries also were supported.
Indonesia's 2044s held on to levels of 5.51%/5.479% from
5.504% yesterday as candidate Prabowo Subianto withdrew from the
race after denouncing the election process as undemocratic,
according to Reuters. Indonesia's Pertamina's 2044s widened
slightly to yield 6.308%/6.263% today from 6.298% yesterday.
India's Bharti Airtel 2024s strengthened to yield
4.805%/4.724% today from 4.819% yesterday. ICICI Bank's 4.8%
2019s were quoted at 3.579%/3.493% today from 3.589% at the
However, IDBI 5% 2019s were quoted at 4.28%/4.153% from
4.247% at yesterday's close. That was around 10bp wider than
last week when the bank announced a roadshow for a USD Basel
III-compliant bond via Citigroup and HSBC.
Sinopec's 2017s and 2024s were both 3-to-5 cents lower,
quoted at 99.959/100.128 and 104.015/104.35 yesterday,
Country Garden's 2021s firmed slightly to yield
7.695%/7.561% from 7.767% yesterday, while Wanda Properties'
2018s rose 20 cents to 100.728/101.079 from 100.72 yesterday.
Most Single B rated PRC property names, however, were weak.