APAC Credit Roundup: Weekly Review: Week ended August 7

Research evidence excerpt

J P M O R G A N

Asia Pacific Credit Research

10 August 2026

APAC Credit Roundup

Weekly Review: Week ended August 7

Weekly Review – Favorable Treasury moves

Asia Pacific Credit Research

US HG - Spreads tightened despite hyperscaler supply pressure

Soo Chong Lim AC

Asia Financials - China continued to underperform

(852) 2800-7387

J.P. Morgan Securities (Asia Pacific) Limited

China IG - Second best weekly performer in Asia IG

China HY - Gains across Property and Industrials

North Asia - Higher across HK and Korea

Asia Gaming - Continued positive returns

Indian corporates - Mixed performance compared to peers

Indonesian corporates - Outperformed across the space

Matthew Hughart AC

(852) 2800-6518

J.P. Morgan Securities (Asia Pacific) Limited

Alvin Au AC

(852) 2800-8533

J.P. Morgan Securities (Asia Pacific) Limited

Aman Aggarwal AC

(852) 2800-0081

J.P. Morgan Securities (Asia Pacific) Limited

Weekly Review - Favorable Treasury moves

Treasuries supported the Asia credit market. The JACI returned 0.3%, bringing

the year-to-date return to 0.7%. The gain was all due to the Treasury moves; the

curve broadly moved 10bp lower as several developments came in dovish for

Treasuries, including last week’s jobs report. Spreads were a drag as the index

moved to the wider end of its recent range, ending the week 3bp wider at 91bp and

taking nearly 0.1% off returns. Recall, spreads have been in a relatively tight 11bp

range, and last week saw this pattern reinforced. In terms of credit segments,

investment grade bonds drifted 4bp wider, although this was partially offset by 4bp

of spread tightening among high yield credits, as several credit stories caught bids.

Asia lagged the peers last week. The JACI (+0.29%/3bp) lagged the CEMBI

Broad (+0.49%/-2bp) ,and the EMBIG (+0.95%/-6bp). Within the CEMBI

Broad, Asia (+0.38%/0bp) lagged LATAM (+0.66%/-4bp), and CEEMEA

(+0.48%/-1bp). Compared to US comps, CEMBI Broad Asia IG (+0.34%/1bp)

lagged US IG (+0.63%/-2bp), and Asia HY (+0.56%/-2bp) lagged US HY

(+0.74%/-13bp).

A cooler jobs report dampened concerns that the U.S. economy may be

overheating. Nonfarm payrolls declined by 23k in July, and the prior two months'

…