EM ASIA CREDIT: MNI EM Credit Market Update - Asia

Japan sold 3.2 trillion yen ($22.04 billion) of bills due May 20, 2026 on May 19. The bills were sold at a price of 99.433, have a yield of 0.5702% and will settle on May 20

Asia continues to enjoy strong inflows with most countries’ net positive for last week, and the total for the surveyed markets exceeding US$5bn. 

• South Korea: Recorded outflows of -$6m on Friday, bringing the 5-day total to +$684m. 2025 to date flows are -$11,360m. The 5-day average is +$137m, the 20-day average is +$22m and the 100-day average of -$128m.
• Taiwan: Had inflows of +$543m as of Friday, with total inflows of +$3,381m over the past 5 days. YTD flows are negative at -$11,090. The 5-day average is +$676m, the 20-day average of +$418m and the 100-day average of -$124m.
• India: Had inflows of +$671m as of the 15th, with total inflows of +$807m over the past 5 days.  YTD flows are negative -$10,088m.  The 5-day average is +$161m, the 20-day average of +$333m and the 100-day average of -$120m.
• Indonesia: Had inflows of +$32m as of Friday, with total inflows of +$221 over the prior five days.  YTD flows are negative -$2,947m.  The 5-day average is +$44m, the 20-day average -$31m and the 100-day average -$33m
• Thailand: Recorded outflows of -$34m as of Friday, outflows totaling -$175m over the past 5 days. YTD flows are negative at -$1,747m. The 5-day average is -$35m, the 20-day average of -$18m the 100-day average of -$18m.
• Malaysia: Recorded inflows of +$43m as of Friday, totaling +$421m over the past 5 days. YTD flows are negative at -$2,090m. The 5-day average is +$84m, the 20-day average of +$38m and the 100-day average of -$24m.
• Philippines: Saw outflows of -$7m as of Friday, with net inflows of +$5m over the past 5 days. YTD flows are negative at -$224m. The 5-day average is +$1m, the 20-day average of +$3m the 100-day average of -$3m.

The yuan is unlikely to see sharp appreciation against the U.S. dollar in the near term, as the market monitors China-U.S. trade talks, while the greenback may show resilience before an expected interest-rate cut between September and December, Yicai.com reported citing analysts. The variable of the countercyclical factor in the central parity rate has been -200 points in recent days, far from the previous range of nearly -1,000 points, which signals less desire for the People’s Bank of China to promote yuan appreciation amid ongoing export challenges, the newspaper said citing an unnamed forex trader. The central parity could be further lowered to 7.17-7.18, compared with 7.1938 set last Friday, the newspaper added.