Asia: China hits lowest level in two months but other regional markets fare better
Updated : 11:13
Most Asian stocks continued higher on Thursday, but China remained on the red.
The Shanghai composite index fell 3.47% to its lowest level in two months, despite news that two major stock market exchanges lowered the fees they charge investors on transactions in the wake of the recent slump in shares.
"As the root of the problem, surely these moves are just destined to worsen the situation further down the line," Accendo Markets analysts said.
Fitch Ratings said in a report on Thursday growth in emerging Asia should improve steadly excluding in China.
The ratings agency forecasts aggregate growth in emerging Asia excluding China to accelerate to 6.7% in 2016 from 6.4% in 2015.
In China, Fitch expects growth to slow to 6.8% in 2015 and 6.5% in 2016 "as rebalancing continues", it said.
Elsewhere, Hong Kong's Hang Seng rose 0.12%. Following news Macau will ease visa rules for mainland tourists, hotels and casinos operator Galaxy Entertainment jumped 13.75%. Sands China, a resort developer which also operates in Macau, rose 11.88%.
The Nikkei 225 was up 0.95% thanks to optimism of a Greek solution and the impact of solid US ADP employment data. As a result, the yen was weaker, which is good for exporters.
In economic news, Japanese electronics manufacturer Sharp rose 8.6% after Standard & Poor's moved the company back out of "selective default", one day after it announced that it was issuing preferred securities instead of repaying loans.
Fast Retailing gained 2.23% despite news its year-on-year sales were down 11.7% in June.
Elsewhere in Australia, the ASX index rose 1.52% driven by an improved trade deficit and despite further falls in commodities prices.
Trade balance figures published by the Australian Bureau of Statistics showed the deficit improved to A$2.75bn in May from A$4.13bn, but this was still below expectations of A$2.2bn. Continuing with economic data, exports rose 1% in May from a decline of 6% one month earlier.