stan grant joining us live from beijing. many thanks. andrew. >> reporter: the chinese economy is tied so close to the u.s. economy and so many other economies around this part of the world are becoming increasingly tied to the chinese economy. so it's also interlinked at the moment. take the second biggest economy. we're talking about japan. it has a huge stake in both china and the u.s., particularly with borrowings. japan is the u.s.'s second biggest creditor. kyung lah is live in tokyo. kyung, has there been any reaction to this deal? >> reporter: we just heard from the finance minister in japan. he's cheering on this deal and is pleased that the deal has been struck. he says, quote, we're expecting that this news will erase anxiety about the future. this is good news. now, the market also cheering it on, though not very loudly. the market closed up at 1.34%. we're also keeping a close eye on the dollar, what the u.s. dollar was doing versus the yen. that his been a very big story here in japan. the weakening u.s. dollar does undercu

and our senior international correspondent stan grant explains, the reason for the downgrade are both economic and political. >> reporter: he has poured over the u.s. financial books, and he doesn't like what he sees. he once worked as an accountant for a chinese firm on wall street, but now he says he's lost faith in america's economy and its political system. >> translator: the two political parties acted in a very irresponsible way and it quickly exposed a negative impact of the system in the economy. >> reporter: he heads up china's only independent national credit ratinging agencagency. while the big three, moody's, fitch, and standard & poor's, he's watched them downgrade it once. he says he's marking america down again. our duong rating of the u.s. reflecting reall. >> reporter: the people who work here pride themselves on being independent. it's not controlled by the chinese government and will make the hard calls where other international credit ratings agencies will not. >> translator: people are used to credit ratings by the big three, but a financial crisis has proved them

stan grant has the story. >> reporter: he's a big man with big ambitions. >> you have big dreams? >> yes, yes, of course. >> you wants to be president one day? >> maybe. >> reporter: you shouldn't laugh too loudly. in mongolia no one is more famous than asashoryu. that's his japanese sumo name. for 15 years as a grand master he dominated the sport. now retired and back home, locals call him simply the champ. is he the symbol of the new mongolia? there's that laugh again. >> maybe. >> my whole generation, he says, has experienced the opening of mongolia. so i feel a great honor to be alive in this new free country. the big man has slipped down, once 170 kilograms, he now taps out at 130. his appetite for success is as big as ever. it's difficult to say if i'll became a world famous billionaire. assume more and business are completely different, different worlds. it is my ambition to become a big business plan. we should all strive for success, especially as mongolia has such a bright future. from the back of his expensive black merc, they show off just how much he owns of mongolia'

stan grant is standing by in beijing watching the shanghai composite index. >> reporter: it's opened flat, last week took a bit of a hit with concerns about the potential default in debt. china is the biggest holder of u.s. treasuries and that made them a bit nervous their investment could be dented by this political process in the u.s. really it's been about politics here. there's been frustration amongst leaders in china about the process in the united states. they'll be breathing a sigh of relief now because they hold a lot of money in dollar denomination and this is the only place for them to invest. >> the asian markets are now open. they apparently, at least so far, like what they've seen and heard coming out of washington. >> what a difference just a few minutes make, right? as you've been saying, it appears there's a deal. even with the debt deal that's on the table, the u.s. economy is still facing soaring unemployment, you know that, a sinking gdp and really a fragile housing market here. >> it is still a fragile recovery if we can call it that. let's bring in once again al

but the credit rating agency in china has already taken achlkts stan grant, beijing, has the story. >> reporter: he's pored over the u.s. financial books and doesn't like what he sees. he once worked for an caught aunt but he's lost faith in the american economy and its political system. >> translator: the two political parties acted in a very irresponsible way and quickly exposed the negative impact of the system on the economy. >> reporter: he heads up dagong, china's only independent national credit rating. while the big three, moody's, fitch, standard & poor's watch and wait, they downgraded them once and now on the back of the dead.net crisis, he says he's marking them down again. >> translator: it simply reflects the u.s.'s inability to pay back the debt. >> reporter: they pride themselves on being independent. dagong says night controled by the chinese government and will make the hard calls where other international credit ratings agencies will not. >> translator: people are used to credit ratings by the big three but a financial crisis has proved them wrong. they can no longe

cnn's stan grant is in beijing monitoring the shanghai composite index. start with you, pauline >> the hang seng is up by 1.65%. we also got a really good lead-in from tokyo, seoul and sydney which are all up by 1.5%. australia up by 2%. now those three indices opened about an hour and a half ago so they gave hong kong a very good lead-in. hong kong is asia's financial hub where many of china's biggest companies an banks list on this stock exchange. also the hong kong dollar is pegged to the u.s. dollar so a lot of people interested in seeing how the u.s. dollar. right now it is strengthening. >> thank you, pauline. >>> we also want to go to beijing. stan grant is standing by in beijing watching the shanghai composite index. >> reporter: it's opened flat, last week took a bit of a hit with concerns about the potential default in debt. china is the biggest holder of u.s. treasuries and that made them a bit nervous their investment could be dented by this political process in the u.s. really it's been about politics here. there's been frustration amongst le

stan grant, cnn, mongolia. >> hmm. you're watching "world business today." >>> coming up, the final chapter. how a little book store made famous in the film "notting hill" made bust. we'll take you there next. imagine... one scooter or power chair that could improve your mobility and your life. one medicare benefit that, with private insurance, may entitle you to pay little to nothing to own it. one company that can make it all happen ... your power chair will be paid in full. the scooter store. hi i'm doug harrison. we're experts at getting you the power chair or scooter you need. i didn't pay a penny out of pocket for my power chair. with help from the scooter store, medicare and my insurance covered it all. call the scooter store for free information today. in hong kong, on pretty dull, gray day. welcome back. you're watching "world business today." >>> setting for a budding romance between julia roberts and hugh grant in the 1999 hollywood hit "following hikno"e book shop not far from here will close its doors to c