Stocks in Australia and Tokyo close higher Wednesday, reflecting the generally brighter sentiments around Asian markets.

In Sydney, the S&P/ASX 200 was 9.8 points up at its closing 4693.7 points while the broader All Ordinaries was ahead 12.3 points at 4765.30, according to market reports.

In Tokyo, the Nikkei Stock Average closed higher by 95.06 points or 0.99 percent from the previous day at 9,662.08 points.

In other major bourses, South Korean stocks were trading 1.3 percent higher late in the session at 2,129.88 points on the Kospi index, while Hong Kong shares were up by 0.5 percent to 23,016.74 at mid-afternoon.

The positive movements contrasted the Dow and S&P 500's weaker closings overnight, their third day of declines attributed to recent declines in commodity prices and soft economic growth as evidenced by latest corporate earnings reports.

The Australian shares' modest gains came before an announcement of a debt ratings downgrade on all four of the country's major banks.

Moody's downgraded by a notch - from an investment grade of Aa1 to a lower Aa2 - its ratings on Australia & New Zealand Banking Group, Commonwealth Bank of Australia, Westpac Banking Corp., and National Australia Bank, due to their "dependence on global lending markets," the credit ratings firm's announcement said.

Expected to lead to higher lending rates, the debt ratings downgrade came although the Australian banks emerged from the recent global financial crisis barely damaged.

Shares of ANZ and NAB came up with modest gains at the end of trading Wednesday, while Commonwealth and Westpac recorded losses.

In Tokyo trading, increased demand for stocks of banks and telecommunication firms boosted the market, brokers said.

Among the gainers were Mizuho Financial Group, Mitsubishi UFJ Financial Group, and Sumitomo Mitsui Financial Group. The day's losers, on the other hand, included Sony Corp., Sharp Corp., and Canon, all major exporters affected by the rising yen, according to traders.

In Seoul, carmakers Kia Motors and shipbuilder Hyundai Heavy Industries led the advancers.