EM ASIA CREDIT: MNI EM Credit Market Wrap - Asia

10yr U.S. treasury yields were 2bp tighter on the day at 4.2%. President Trump signed directives last night reducing some auto part levies. U.S. officials talked generally about positive movement on tariff discussions, though nothing confirmed.

Asia EM started the day with a positive bias, but it didn’t last, and we are closing up to +3bp wider. Thailand being the underperformer, with our $ proxy (PTTEPT 1/30) +3bp on the day. This is likely driven by Moody's, which downgraded the outlook to Negative.

In terms of Q1 results, China Vanke reported a marked deterioration in profitability, though they continue to have the support of the main shareholder, Shenzhen Metro Group, with an additional CNY3.3bn loan. In other results, Samsung Electronics numbers were solid, LG Chem was well ahead of consensus and finally LG Energy adjusted numbers were quite weak. No new issues announced today.

Best & Worst Performers (zsprd, bp)