Investors shrugged off Moody’s downgrade of Japan’s sovereign debt rating, maintaining their bullish outlook on the market despite headwinds facing the world’s third-largest economy.
The benchmark Nikkei 225 traded was up 0.1 percent on Tuesday, one day after the U.S. ratings agency cut Japan’s credit rating by one notch to A1 from Aa3, citing increased uncertainty over whether Japan Prime Minister Shinzo Abe can achieve his deficit.
In comparison, Standard & Poor’s has an AA- rating on Japan, equivalent to the Aa3 level that Moody’s had before the downgrade. Fitch Ratings has Japan at A+, on par with Moody’s new rating.
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