Morning Commentary: Emerging markets open stronger on U.S. jobs report; Asian, Turkish notes active

By Christine Van Dusen

Atlanta, March 4 – Emerging markets assets opened stronger on Friday as the United States released data showing that employers in February added more jobs than expected, though wages did dip from the previous month.

“With [non-farm payrolls] out of the way, we move toward the weekend with the market continuing a bullish tone,” a trader said. “With that in mind, next week could be quite supply-heavy after a volatile January and February kept some issuers sidelined.”

Asian bonds opened strongly on Friday morning, another trader said, and Turkey’s sovereign and corporate bonds remained “fairly attractive.”

And Pakistan bonds continued to trade “super well,” with real-money lifting the curve as locals sold the 2016s ahead of their maturity this month, he said.

In other news, a team from the International Monetary Fund is expected to visit Zambia this month, following the IMF’s approval of an economic recovery program.

“This will provide the opportunity to set the objectives and the framework for further negotiations,” a strategist said. “The Sub-Saharan African state is currently struggling from lower commodity prices, adverse weather conditions and widespread electricity shortages ahead of general elections in August.”

Tunisia, meanwhile, may be able to access a $2.8 billion emergency loan facility from the IMF in the coming weeks, he said.

“Political and social instability have been driven by economic weakness, unemployment, corruption and risks from terrorism over the last year,” he said. “The government therefore intends to use the funds in its five-year development plan to boost the economy, create jobs and raise living standards.”

Looking to Ukraine, bonds entered the end of the week “modestly stronger” with “light activity,” said Fyodor Bagnenko, a fixed income trader with Dragon Capital.

“Corporates were slightly more active,” he said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.