All benchmark equity indices across Asia are uniformly red in Tuesday morning trades and most major markets in the region are trading with around half a percent losses after global rating agency Moody's announced a slew of credit rating downgrades of European nations. Investors at large took to risk aversion after the agency kept the coveted AAA credit rating for France and the UK on negative watch while it downgraded the ratings of Italy, Portugal, Spain, Slovakia, Slovenia and Malta.
The ratings cuts dampened sentiments and even overshadowed the overnight gains on Wall Street, which came on the back of Greek Parliament's approval of key austerity measures. The benchmark in China traded on a dismal note with over half a percent losses after Moody’s debt rating cut reignited worries that the region will struggle to contain its crisis.
Shanghai Composite declined 13.74 points or 0.58% to 2,338.12, Hang Seng eased 20.97 points or 0.10% to 20,866.43, Jakarta Composite slipped 6.43 points or 0.16% to 3,955.47, Nikkei 225 dropped 17.27 points or 0.19% to 8,981.91, Straits Times fell 7.21 points or 0.24% to 2,969.13, Seoul Composite receded 6.51 points or 0.32% to 1,999.23 and Taiwan Weighted shed 29.43 points or 0.37% to 7,883.48.
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