HONG KONG: Asian markets priced in some solid gains before China goes on holiday to celebrate Lunar New Year. Traders said more positive news out of Ukraine and hopes of an agreement on Greek debt had boosted sentiment.
Shanghai shares were up more than 1.5% and Hang Seng rose over 1%. Japanese shares were the outlier and fell 0.46%.
It was also an active day for bonds with the more bullish mood boosting prices, particularly in Chinese real-estate and high-yield names, which were half to one point higher.
After a poor debut, Evergrande's new 5-year non-call 3 is now trading above par and being bid at 100.4 according to Tradeweb.
"Overall, it was quite a strong day," said a high-yield trader based in Singapore. "Many investors were adding in the property space and now Evergrande is above reoffer. People seem to be looking for high-beta names that underperformed."
Traders pointed out that, with the approaching Lunar New Year, supply had become a consideration. The period is usually very quiet in terms of new issues.
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