Asian Stocks Firm Despite Fitch's China Downgrade

Asian stocks traded higher on Wednesday, unfazed by a rating downgrade to China by Fitch, which triggered a mild domestic sell-off but analysts said did not take into account the economy's future performance, Scott Murdoch reported for Reuters.

China's blue-chip CSI300 index was down 0.43% after earlier opening flat, while the Shanghai Composite was down 0.34%. Hong Kong's Hang Seng Index escaped the selling and was trading up 1.88%.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.7%, after U.S. stocks ended the previous session with mild gains.

The index is up 0.2% so far this month. The yield on benchmark 10-year Treasury notes was at 4.3556%, compared with its US close of 4.366% on Tuesday. The two-year yield, which rises with traders' expectations of higher Fed fund rates, touched 4.7384%, compared with a US close of 4.747%.

China's blue-chip CSI300 index was down 0.43% after earlier opening flat, while the Shanghai Composite was down 0.34%. Hong Kong's Hang Seng Index escaped the selling and was trading up 1.88%.

Australian shares were up 0.3%, while Japan's Nikkei stock index was down 0.4%. The Nikkei is looking to test 40,000 points again, with the yen's slide seen helping fuel that push.

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