Mixed day for Asian stocks; Chinese banks ratings upgraded
City Index November 30, 2011 7:30 PM
<p>Asian stocks were mixed after S&P cut the ratings on several large U.S. and European banks but upgraded the ratings on two Chinese banks. Both […]</p>
Asian stocks were mixed after S&P cut the ratings on several large U.S. and European banks but upgraded the ratings on two Chinese banks.
Both Bank of China and China Construction Bank where upgraded by S&P, giving the Chinese lenders higher grades than most of their U.S. rivals.
S&P said the changes reflect the “very high” likelihood of China’s government providing help for the lenders in the event of financial distress.
Despite the good news and endorsement of the region’s financial health, the MSCI Asia Pacific index was 0.8% lower at noon in Tokyo, snapping its two day winning streak and ending the month on a lower tone.
In economic news, data out of South Korea showed industrial output slipped in October when compared to the prior corresponding month, 0.7% lower, as the impact of the European debt crisis hit demand volumes. Chinese exporters will be watching very closely. An official government survey in Japan showed manufacturers plan to cut output 0.1% this month after a gain in October.
In regional corporate news, recent data shows Thai companies sold the least amount of locally dominated corporate bonds in November since the beginning of 2008 as the country’s worst flooding in almost a century hit investor confidence. The floods claimed more than 600 lives since July and disrupted supplies for companies globally.
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