HONG KONG, July 27 (IFR) - Asian credits were firm on Thursday, following regional equity markets gains after a relatively cautious wording on the inflation outlook by the US Federal Reserve.

"With the Fed seen as adjusting policy at a snail's pace up until now, that has allowed risk to remain on.

But for how much longer? With rates still low, the hunt for yield can continue a while longer," Societe Generale said in a note.

Investment-grade credits, in general, traded 2bp tighter, with 10-year bonds of Chinese bad-debt managers trading 3bp-4bp tighter, according to a Hong Kong-based trader.

The iTraxx Asia IG index tightened marginally and was indicated at 80.75bp/81.50bp.

Bonds of Chinese banks traded in line with the broader market, tightening by around 2bp.

Moody's on Thursday revised its outlook for China's banking system to stable from negative on expectation that non-performing loan formation rates will be relatively stable at current levels.

"The Chinese banks notes are already traded at a very tight level, the Moody's action didn't have any impact on their price," said the trader.

Recent new issue Yinchuan Tonglian Capital Investment Operation's 2020s continued to see buying and traded a further 7bp tighter from yesterday. The bonds were quoted at a cash price of 100.44, versus reoffer of 99.471.

Sunac China's 2019s were bid at a cash price of 103.25, unchanged from yesterday. The Chinese property developer is meeting fixed income investors this week in Hong Kong and Singapore via HSBC and Morgan Stanley.

Market expects the company is exploring opportunities to issue bonds to help fund its huge acquisition of Wanda's tourism projects.

Noble Group's bonds were little changed despite its shares plunging more than 30% on Thursday. The commodity trader disclosed a US$1.3bn impairment charge to be taken against its trading book and expects a US$250m-300m operating loss for the second quarter.

Its 2020s and 2022s were bid at around 33, already trading at distressed level for some time.

Moody's said Noble's profit warning is credit negative, and will further increase the challenges the company faces in turning around its operations and tackling large near-term debt maturities.

(Reporting by Carol Chan; Editing by Vincent Baby)