The China stock market has moved lower in consecutive trading days, dipping more than 20 points or 0.6 percent along the way. The Shanghai Composite Index now rests just above the 3,505-point plateau although it’s due for a positive bounce on Friday.
The global forecast for the Asian markets is positive, with bargain hunting expected to provide a boost, especially among oversold technology stocks. The European and U.S. markets were firmly higher and the Asian markets are expected to follow suit.
The SCI finished slightly lower on Thursday as gains from the financials and properties were offset by weakness from the resource companies.
For the day, the index eased 4.02 points or 0.11 percent to finish at 3,506.94 after trading between 3,486.07 and 3,517.74. The Shenzhen Composite Index rose 2.90 points or 0.12 percent to end at 2,330.36.
Among the actives, Industrial and Commercial Bank of China collected 0.38 percent, Bank of China added 0.31 percent, China Construction Bank rose 0.14 percent, China Merchants Bank climbed 1.22 percent, China Life Insurance rallied 2.27 percent, Jiangxi Copper plunged 4.69 percent, Aluminum Corp of China (Chalco) tumbled 1.89 percent, Yanzhou Coal plummeted 7.93 percent, PetroChina surrendered 2.92 percent, China Petroleum and Chemical (Sinopec) tanked 2.03 percent, Baoshan Iron retreated 1.77 percent, Gemdale gained 0.46 percent, China Vanke advanced 0.75 percent and Bank of Communications, Poly Developments and China Minsheng Bank were unchanged.
The lead from Wall Street is upbeat as the major averages opened higher on Thursday and picked up steam as the day progressed, cutting into the losses from the previous two days.
The Dow jumped 188.11 points or 0.55 percent to finish at 34,084.15, while the NASDAQ spiked 236.00 points or 1.77 percent to end at 13,535.74 and the S&P 500 advanced 43.44 points or 1.06 percent to close at 4,159.12.
The support on Wall Street came in reaction to the sell-off in the previous session, with upbeat earnings and optimism about global economic recovery helping to offset inflation worries and fears about monetary easing.
In economic news, the Labor Department said unemployment claims in the U.S. dropped last week to their lowest since the week ended March 14. Also, the Philadelphia Fed Manufacturing Index fell in May from a 50-year high in April.
Crude oil prices fell sharply Thursday, extending losses to a third straight day as signs of progress in Iran nuclear talks raised expectations that global crude supply will see a surge in the near term. West Texas Intermediate Crude oil futures for June ended down by $1.31 or 2.1 percent at $62.05 a barrel on the expiration day.
Higher Open Called For China Stock Market
2021-05-21 01:03:10
