EM ASIA CREDIT: MNI EM Credit Market Update - Asia
Apr-02 05:00
* Asia EM govie/agency bond spreads are mostly better in the morning session, with the Philippines...
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ASIA STOCKS: Equities Higher On Strong China Data
Mar-03 04:54
Asian markets kicked off the week with solid gains, buoyed by upbeat Chinese factory data and a positive close on Wall Street at the end of February.
- Hong Kong’s HSI jumped 1.2%, driven by a 2% rise in the HS China Enterprises Index, with tech giants like Alibaba (+4.6%), Tencent (+3.7%), and Meituan (+2.5%) leading the charge, while the debut of Mixue Bingcheng’s shares soared 40% after its $444 million IPO. The Shanghai Composite edged up 0.3% to 3,332.27, and the CSI 300 rose as much as 1% before paring some gains, supported by stronger-than-expected February PMI data reflecting increased new orders amid tariff-driven export rushes, though the ChiNext jumped nearly 2.9%.
- In Japan the Nikkei 225 climbed 1.6%, while the TOPIX jumped 1.80&, while Australia’s ASX 200 advanced 0.8% reflecting optimism around potential US rate cuts and a pause in yen appreciation.
- However, Taiwan’s Taiex dropped 1.5%, and Bangkok’s SET fell 0.7%, while South Korean markets were closed for a holiday.
- Investors are focused on China’s upcoming National People’s Congress, hoping for a significant stimulus package to counter US tariffs—set to rise to 20% on Chinese goods this week—though uncertainty lingers as traders watch for last-minute tariff negotiations and broader geopolitical developments.
JGBS: Futures Weaker & Near Lows, US Tsys Weighing
Mar-03 04:49
JGB futures are holding weaker at session cheaps, -30 compared to the settlement levels.
- Outside of the previously outlined Jibun Bank Manufacturing PMI data, there hasn't been much by way of domestic drivers to flag.
- Cash US tsys are 2-3bps cheaper in today’s Asia-Pac session after an emergency security summit in London on Sunday raised bets that haven demand could lose its appeal should prospects improve for an end to fighting in Ukraine.
- Nevertheless, this weakness has started to reverse as some anticipate that slower US growth expectations could see traders increasingly price in a potential Federal Reserve rate cut as soon as June.
- “Moreover, the risk of a government shutdown from March 15 appears greater than ever.” (per BBG)
- Cash JGBs are flat (40-year) to 3bps cheaper (5-10-year zone) across benchmarks. The benchmark 10-year yield is 2.6bps higher at 1.404% versus the cycle high of 1.466%.
- The 30-year yield is 0.6bp higher at 2.366% after hitting a high of 2.371%, the highest since 2008.
- Swap rates are 1-2bps higher. Swap spreads are mixed.
- Tomorrow, the local calendar will see Labour Market, Capital Spending, Company Profits, Monetary Base and Consumer Confidence data alongside 10-year supply.
CHINA: Bond Futures Higher Ahead of NPC.
Mar-03 04:36
- Bond futures are stronger today as China’s National People's Congress is about to kick off.
- China’s 10YR future is up +0.09 at 108.295, following Friday’s close of 108.205.
- The 10YR is at the mid-point of the 50-day EMA and the 100-day EMA as the 20-day EMA loses momentum.
- China’s 2YR future is up +0.06 today at 102.652, following Friday’s close of 102.59.
- The 2YR future has breached the 200-day EMA of 102.63 and is trending upwards with the 20-day EMA trending lower at 102.68.
- There is considerable expectation built up from this year’s NPC with both monetary and fiscal policy announcements expected.
- China’s authorities generally keep markets stable around the NPC.
