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Thursday June 21, 1:46 PM Emerging debt-New Hynix bonds trade up in weak Asian market HONG KONG, June 21 (Reuters) - Asian bonds weakened on Thursday, taking their cue from a sell-off in emerging debt markets elsewhere, but losses were contained by strong risk appetite reflected in solid responses to new issues. A new bond from Hynix Semiconductor Inc. , the world's No. 2 computer memory chip maker, rose in the secondary market after the $500 million offer was subscribed 12 times. "We had a lower close in the United States, so Asia has opened weak, but volumes are light as equities are still higher," said a Hong Kong-based trader. "We will have to see how London opens for further market direction." Hynix's 10-year dollar bond, priced at par, was trading at 100/100.25 cents to a dollar. In geographical terms, 40 percent of the issue was allocated to the United States, 38 percent to Asia and 22 percent to Europe. By investor type, funds and asset managers took 56 percent, banks took 24 percent, insurance companies accounted for 16 percent while private banks took 4 percent. Bonds from Thailand's TMB Bank held steady on talk that fresh capital may be infused into the bank and its management could be changed following its inability to meet a coupon payment obligation. Spreads on TMB's hybrid tier I perpetual securities were bid at 365 basis points (bps) over U.S. Treasuries, while there were no offers. TMB's shares were up nearly five percent. Benchmark bonds from the Philippines weakened following losses in New York triggered by inflation concerns. Bonds from Manila are considered market benchmarks because of their high liquidity and widespread investor base. Philippine bonds due in 2032 were traded at 97/97.25 cents to a dollar and the 2031 bonds were quoted at 111.75/112. The bonds were down by quarter to half a point. Philippine five-year credit default swaps (CDS) -- insurance-like contracts that protect against defaults and restructuring -- widened to 95/99 basis points, after trading as narrow as 91 bps. Traders said the sacking of the head of the country's main tax collection agency was a sign that the government was determined to meet its fiscal deficit target. Philippine President Gloria Macapagal Arroyo replaced Jose Mario Bunag as head of the Bureau of Internal Revenue, after the agency's failure to hit targets put this year's budget deficit goal in doubt. "It shows that the government is on its toes and meeting the target remains the main focus," said a Manila based trader. The primary market continues to be busy with Indonesia's PT Perusahaan Listrik Negara (PLN) [ID:nHKG280211], State Bank of India [ID:nHKG169572] and Thailand's PTT PCL [ID:nHKG244564] continuing with their bond offerings. State Bank of India's $225 million has been fully subscribed and is likely to price later on Thursday. PLN will also price later on Thursday while PTT is seen priced in Tokyo trading hours on Friday. Malaysia's MISC Bhd , the world's largest carrier of liquefied natural gas [ID:nHKG241223] and South Korea's No. 2 auto maker Kia Motors Corp. , [ID:nHKG280355] are both likely to sell bonds next week. FIVE-YEAR CREDIT DEFAULT SWAPS Bid/Ask spread Current Week ago Korea Dev Bank 12/~ 12/~ Hutchison 19/23 20/24 PCCW-HKT 34/39 36/42 China 11/13 11/13 Indonesia ~/100 101/105 Korea ~/14.5 14.5/17 Malaysia 13/~ 13/16 Philippines ~/99 102/107 ~ no bid or ask spread For CDS prices double click on ASIAN BENCHMARK DOLLAR BONDS Coupon Maturity Bid price Bid spread 5-YEAR ------ DBS Bank 15-May-11 105.16 63 Malaysia 7.13 15-Jul-11 106.54 67 ICICI Bank 7.50 12-Jan-12 98.29 118 Petronas 5.75 22-May-12 105.57 68 Hutchison 7.00 13-Feb-13 102.04 106 Chartered Semi 6.50 4-Apr-13 100.58 112 Korea 6.25 1-Jun-13 93.02 64 United Overseas 4.25 2-Jul-13 93.76 73 PCCW-HKT 4.50 15-Jul-13 98.71 125 China 6.00 29-Oct-13 96.37 43 10-YEAR ------- Hutchison 6.25 24-Jan-14 101.62 86 Korea 4.88 22-Sep-14 95.22 60 PCCW-HKT 5.25 20-Jul-15 93.05 127 Woori Bank 6.13 3-May-16 100.20 100 Penerbangan 5.63 15-Mar-16 97.57 90 Philippines 8.75 7-Oct-16 115.75 138 Indonesia 6.88 9-Mar-17 104.25 119 ICICI Bank 6.38 30-Apr-22 95.33 195 Petronas 7.88 22-May-22 117.93 94