Emerging Debt-Asia spreads widen, wait for leads

HONG KONG, June 8 (Reuters) - Asian dollar bond prices traded weaker on Wednesday on profit-taking, and traders and analysts said many investors were waiting for new leads to appear.

"There is very little significant credit news driving the market, apart from yesterday's upgrade from S&P on Korean banks," said Lloyd Ong, senior credit analyst at BNP Paribas.

"The market remains cautious. We are not seeing serious buying from real money yet."

Spreads on ports-to-telecoms conglomerate Hutchison Whampoa Ltd.'s bonds maturing in 2014 widened by five basis points (bps) to 123/118 bps over comparable Treasuries.

Prices on Philippine sovereign dollar bonds due in 2015 eased ½ to ¾ of a point to 103.75/104.50, in line with the weakness in Brazilian bonds overnight and on allegations that President Gloria Macapagal Arroyo's family took illegal gambling payoffs, a Manila-based trader said.

Five-year Philippine credit default swaps -- insurance-like contract that offer protection against debt default or restructuring -- moved out by about 10 bps to 380/390 bps.

On Tuesday, Standard & Poor's lifted the ratings on five South Korean financial institutions by one notch, citing their improving earnings quality and stabilising asset risks. The five were Shinhan Bank, Chohung Bank, Woori Bank, Korea Exchange Bank and Woori Finance Holdings Co. Ltd. .

Rival agency Moody's Investors Service on Wednesday upgraded Hana Bank's ratings to Baa1 from Baa2 due to improvements in its financial position. Hana Bank's bonds due to mature in 2009 were steady at 87/77 bps above U.S. Treasuries despite the upgrade.

"A lot of Koreans are trading at a very, very tight level," Ong said, explaining the lack of movement in Hana Bank spreads.

Meanwhile, Malaysia's Public Bank Bhd. began marketing a $300 million to $400 million, 12-year bond on Wednesday.

The deal, which will have call options after seven years, is likely to be priced on Friday. Barclays Capital and Citigroup are the lead managers.

Public Bank's 2014 bonds due in 2014 and callable in 2009 were quoted at 102/92 bps over five-year Treasuries. --------------------------------------------

                Bid spread       Ask spread
 Korea Dev Bank            40               44
 Hutchison                 47                ~
 PCCW-HKT                  42                ~
 China                      ~               28
 Indonesia                250              290
 Korea                     41               43.50
 Malaysia                  29               34
 Philippines              377              384
 ~ no bid or ask spread
 For CDS prices double click on
 ASIAN BENCHMARK DOLLAR BONDS

                 Coupon     Maturity   Bid price   Bid
spread
 China              6.8       23 May 11      112.06
54
 Kowloon Canton     8         15 Mar 10      115.53
45
 MTR                7.5       08 Nov 10      115.06
44
 Hutchison          7         16 Feb 11      110.62
93
 PCCW-HKT           7.75      15 Nov 11      116.74
102
 Korea Dev Bank     5.5       13 Nov 12      104.55
86
 Malaysia           7.5       15 Jul 11      116.29
51
 Tenaga Nas Bhd     7.63      01 Apr 11      117.06
63
 Petronas           7         22 May 12      114.23
68
 Philippines        9.38      18 Jan 17      108.16
436
 Philippines        9.875     16 Mar 10      111.49
309
 DBS Group Holdings 7.125     15 May 11      113.18
66
 Singapore Tele     6.375     01 Dec 11      109.72
71
 Spreads are as of previous ISMA close

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