China stocks slump -1 % on Moody’s rating downgrade

Stocks on the Chinese bourses stalled a three-day rally and dropped sharply, after Moody’s Investors Service downgraded the country’s credit ratings, warning that the outlook for its financial strength will worsen. 

China’s benchmark index, Shanghai Composite index is on track to test the lowest levels since Sept last year, down 1% on the day to trade just ahead of 3k mark. Meanwhile, Hong Kong markets drop -0.30% to trade near 23,350 levels.

Amongst other Asian indices, Japan’s Nikkei 225 index advances +0.53% to 19,716, while the Australian stocks also rise +0.25% to 5,774.