Asia report: Most markets higher as Moody's downgrades China rating

Markets in Asia finished mostly higher on Wednesday, with downgrade in China’s credit rating from Moody’s coming during the day, and investors beginning to close their wallets as they waited for the FOMC minutes to be released during their Thursday session.

Japan’s Nikkei 225 was up 0.66% at 19,742.98 at the close, as the yen weakened 0.04% to JPY 111.82 against the greenback.

Ailing technology giant Toshiba saw its shares surge 8.36%, on the breakthrough news its beleaguered US nuclear development acquisition Westinghouse Electric had managed to negotiate a deal allowing it to borrow $800m.

On the mainland, the Shanghai Composite added 0.06% to settle at 3,063.79, while the Shenzhen Composite finished 0.53% firmer at 1,798.87.

Moody’s downgraded China to A1 from Aa3 on Tuesday, whilst adjusting its outlook to stable from negative.

The agency said planned reforms in the country would help to slow increasing leverage in the semi-planned economy, it still would not totally prevent it.

South Korea’s Kospi was up 0.24% at 2,317.34, while the Hang Seng Index in Hong Kong was 0.1% higher at 25,428.50.

Traders in the region finished the session in waiting, ahead of the release of the Federal Reserve’s minutes from its meeting last Wednesday.

The minutes would give a clearer indication as to whether the central bank was likely to raise interest rates in June.

Investors were also keeping a watchful eye on oil prices, ahead of a meeting of the OPEC cartel on Thursday to be led by Saudi Arabia.

Crude prices had risen in recent days on renewed hopes that output cuts, led by OPEC, would be deepened.

Brent crude was last up 0.15% at $54.23 per barrel, while West Texas Intermediate remained flat at $51.47.

Australia’s S&P/ASX 200 finished 0.15% in the green at 5,768.98, while New Zealand’s S&P/NZX 50 added 0.5% to close at 7,421.78.

Both of the down under dollars were stronger on the greenback, with the Aussie last eking out a 0.1% advance to AUD 1.3372, and the Kiwi managing to move forward 0.34% to NZD 1.4217.