Asian markets shrug of Chinese downgrade, China erases early losses too

Major indexes across the Asian markets were high shrugging away the Chinese downgrade, as the investors await the next OPEC meeting. Moody’s downgraded China’s credit rating from Aa3 to A1 and changed its outlook form negative to stable.

Crude oil prices were steady, reportedly on hopes that Thursday's OPEC meeting will keep supply cuts very much front and center. Gold prices were steady too as investors looked to that Fed meeting. At present the chance of a rate rise next month is put at more than 70% by futures-markets.

Chinese markets were mixed following the ratings downgrade, after falling early erased all losses in the intraday activity, with stocks, bonds and the currency little changed.

The Shanghai Composite Index closed up 0.1 percent, after slumping as much as 1.3 percent to approach the key 3,000 level. The Yuan was steady against the dollar, while the yield on the 10-year government debt held at 3.67 percent.

Analysts are of opinion that Chinese Regulators will not let the Shanghais Index fall below its 3000 level, when the index is close to that level they will start buying for stability.

The NIKKEI rose 129.7 points or 0.66 percent, while KOSPI gained 5.6 points. Australia’s benchmark index S&P/ASX 200 was also slightly higher, gaining 0.15 percent.

On other front, investors were also awaiting the minutes of Federal Open Committee meeting to be released today. The minutes will help determine the details of the probabilities regarding rate hike in the upcoming meeting. Another important market driving event is OPEC meeting tomorrow, which will decide the position of member countries on extension or holding of the cuts.

Oil prices held steady after ending the last session higher. Brent crude gained 0.37 percent to trade at $54.35 a barrel and U.S. West Texas International crude edged up by 0.33 percent to trade at $51.64.