LONDON (CNNMoney.com) -- Stocks in China surged Friday after Moody's Investors Service said it may raise the nation's debt rating.
The Shanghai Composite leapt 3.1%, closing at 2,738.74, as traders returned from a week-long holiday. Stock markets in China were closed from Oct. 1 for National Day..
Moody's cited expectations for continued strong growth in China, along with the economy's performance in the wake of the financial crisis, as reasons for placing China's A1 rating on review for possible upgrade.
"Unlike some advanced countries, China does not have the challenge of dealing with deflationary pressures arising from strained private-sector balance sheets and high government debt," Moody's said in a statement.
Elsewhere, the Hang Seng in Hong Kong finished mildly higher. Japan's benchmark Nikkei index fell nearly 1%. U.S. futures were mixed.
Moody's noted that China's economic growth has moderated to a sustainable annual rate of around 8% to 9% and said it expects wages to rise but for inflation to remain moderate.
|Overnight Avg Rate||Latest||Change||Last Week|
|30 yr fixed||3.80%||3.88%|
|15 yr fixed||3.20%||3.23%|
|30 yr refi||3.82%||3.93%|
|15 yr refi||3.20%||3.23%|
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