EM ASIA CREDIT: MNI EM Credit Market Update - Asia

US Treasury yields were 2bp lower at 4.30% during the Asia session, with overnight CPI data showing no material pass through of tariffs (so far), with Fed easing firmly on the cards.

Overnight we saw LATAM USD benchmark spreads around 3-5bp tighter, while Asia EM USD sovereign and agency spreads for the most part were 2-4bp wider, with India the outperformer (EXIMBK 33s, 2bp tighter). Asian equities were in positive territory, led by the Hang Seng, which is up 2.2%.

In newsflow, Freeport Indonesia reported H1 results but continues to face delays in ramping up its copper smelter due to ongoing repairs (negative for spreads). China Resources Land followed other Chinese real estate firms by reporting July property sales down 14% year-on-year (negative); Thai Oil confirmed during its earnings call that asset monetisation and a new perpetual bond in the near-term would support capex and lower leverage (positive). Finally,  Indonesia announced plans to increase the number of international airports from 22 to 40, which will help boost economic activity (positive).