Standard & Poor's downgraded the credit ratings of 37 financial institutions after adjusting its criteria to better reflect the effects of a more intertwined global economy.
Europe's struggles with its debt crisis continue to pre-occupy Chinese stocks investors, while expected credit loosening in China offers a ray of hope. However, one analyst cautions that there is uncertainty surrounding Chinese economic growth.
Chinese and Hong Kong blue chips consolidated at the 19,000 level after Thursday's whopping gain, and turnover fell. Renewed optimism for a solution in Europe is driving bulls.
More bad news from Europe drove Hong Kong stocks lower as the Fitch rating agency downgraded Portugal's debt to junk status. Extremely thin turnover set the stage for volatility on Friday.
A rebound in U.S. markets helped China and Hong Kong bounce back from huge losses Thursday. Chinese banks rebounded after a surge in lending lifted loan values for the month.
China stocks are stuck in a narrow range for now, pulled up by prospects of credit easing in China and down by an unending flow of bad news about Europe's debt crisis.
China and Hong Kong stocks tumbled after the HSBC preliminary manufacturing PMI fell sharply to 48.0, indicating slowing growth in China. Resources stocks posted steep losses.