HONG KONG, May 14 (IFR) - Asian bond markets remained resilient in the face of the Western sovereign bond selloff, with fairly active sessions.
Investment-grade names were seen moving slightly tighter, with new issues from Huawei and China General Nuclear both tightening another 7bp. The iTraxx Asia ex-Japan was quoted moderately wider at 95.25/98.25.
High-yield names also moved mostly tighter, with the yield on Hsin Chong Construction's new issue compressing 10bp.
Traders expressed a degree of surprise that the selloff in Western markets had not hit Asia yet, but opinions were mixed as to how well credit markets in the region would withstand the downward pressure from the West.
"It was a pretty active day," said a Singapore-based IG bonds trader. "Buyers have been coming out after watching what was happening in the U.S. and Europe. For some reason, Asian credit hasn't been affected much."
Equity markets were flatter with the Shanghai and Hong Kong indices trading close to unchanged on the day. The Nikkei and TSEC, however, both suffered losses of around 1.0 percent.
Japan's market was hit with news that Sharp would need a $1.9bn bailout after reporting a huge annual loss. (firstname.lastname@example.org)