South Korea Holds Live-Fire Drill, Tensions Remain

This is a transcript of top stories presented by China's CCTV Business Channel as produced by CNBC Asia Pacific.

Good evening, I'm Christine Tan from CNBC and you're watching "Asia Market Daily".

Asian markets retreated today, as tensions on the Korean Peninsula flared up again.

The North's attack on South Korea's Yeonpyeong Island on November 23 claimed four lives and led to a drop in Asian markets, with fears of an all out war also hampering trade in the U.S. and Europe.

Now, live-fire exercises by the South - and threats of retaliation from the North - have caused another sell off.

(SOT) Stuart Shrimpton, Director of Intelligent Investments:

"I think common sense at the end will prevail, but it's just going to make markets a bit jittery you know for the foreseeable future, for the next 48-72 hours, and until they get some sort of stability coming back. I think eventually there will be enough of the sensible, bigger powers that calm everything down and make things a lot easier for the rest of the week."

China's celebrating not one but two credit rating upgrades in as many months.

Just last month, Moody's raised China's sovereign debt rating up a notch.

Now, Standard & Poor's has upgraded its rating from A+ to AA-.

S&P says the move reflects the government's modest indebtedness, a strong external asset position and the agency's view of China's exceptional growth prospects.

S&P analyst Kim Eng Tan is confident China would respond appropriately to any future threats to its financial stability.

(SOT) Kim Eng Tan, Director, Sovereign Ratings, Standard & Poor's Ratings:

"We do know that the greatest risk to the economy comes from credit, and we've seen elsewhere, the government has so far been able to keep a cap on credit when it chooses to and that is great comfort to us, it could go ahead with credit controls the way it has when the economy is not in a crisis."

That's the latest "Asia Market Daily".

I'm Christine Tan from CNBC.

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