** The main stories out of the region**
The 10yr U.S. treasury yield is 3bp tighter at the time of writing, with a sharp move into the close. Asia EM govie/agency bonds remained largely unchanged, with no standout movers, perhaps a slight bias toward tightening. Sovereign CDS widened marginally on the day. Equities in Asia continued their rally, particularly in tech, as seen in the HSI gaining +4%.
In terms of newsflow, South Korea is considering new tariffs on China steel imports, a positive for Posco. Alibaba released Q3 results, which were ahead of consensus, but overall neutral for spreads. In contrast, the equity market continued to see AI related gains in the stock, with equity +8% on the day. PTT Public, the Thai petrochemical company, reported Q4 results that were materially weaker than consensus. Negative for spreads. Finally, Vedanta announced plans to develop 5,000mw of nuclear capacity in India, and is seeking EOI.
We also published a comment on possible USD refinancing, concluding that current issuance is well behind upcoming maturities. We didn’t have any new supply today.
Best & Worst Performers (zsprd, bp)
Source: Bloomberg