EM ASIA CREDIT: Zhangzhou Transportation Dev. (ZZTRAN, NR/NR/BBB-) new $ mandate

• China’s February CAIXIN PMI beat expectations in February.
• Expectations were dampened, given the impact of Lunar New Year holidays, at +50.4 – from +50.1 in January.
• The result of +50.8 was the highest print in three months and the fifth month in a row of expansion (above 50 equals expansion).
• Output rose to +51.6 from +51.2 with new orders up on the previous month.   
• The Caixin China General Services Purchasing Managers' Index is based on data compiled from monthly replies to questionnaires sent to purchasing executives in over 400 private service sector companies. The index tracks variables such as sales, employment, inventories and prices and is a useful indication as to the general health of private manufacturing companies.

• CHINA FEB CAIXIN MANUFACTURING PMI 50.8 VS 50.1 IN JAN

Asian equity markets are mixed today amid a complex backdrop of global trade tensions, US economic data, and regional policy expectations.

• Japanese shares rebounded, with the Topix Index rising 1.30%  and the Nikkei advancing 1%, driven by gains in automakers like Toyota (+2.5%) and financial stocks, as softer US inflation data (core PCE up 0.3% month-on-month and 2.6% year-on-year) fueled expectations of potential Federal Reserve rate cuts, while a pause in yen appreciation encouraged buying.
• South Korea is out for Independence day, while Taiwan's TAIEX is trading 1.60% lower.
• Chinese stocks face uncertainty as investors await the NPC outcome on March 5, with hopes pinned on a robust fiscal stimulus to counter weak domestic demand and US tariff threats, though Hong Kong stocks are supported by growing mainland Chinese investment, which hit HK$153b net in February.
• Australia's ASX 200 edging up 0.3%led by banks and property stocks. New Zealand’s S&P/NZX 50 dipped 0.6%
• Elsewhere, the yen is poised for further gains as a safe-haven asset amid falling US Treasury yields and rising volatility, while the Australian dollar appears vulnerable due to trade concerns and reliance on Chinese policy clarity. Trump’s tariff plans, set to escalate on March 4, continue to weigh on sentiment, particularly for China-linked markets, though southbound flows into Hong Kong may mitigate some pressure.