China Stock Market May Reverse Thursday’s Losses

The China stock market on Thursday snapped the three-day winning streak in which it had gathered almost 75 points or 2.1 percent. The Shanghai Composite Index now rests just beneath the 3,525-point plateau although it may tick higher again on Friday.

The global forecast for the Asian markets is upbeat amid bargain hunting from technology stocks, capped by stalled crude oil prices. The European markets were mixed and the U.S. bourses were up and the Asian markets figure to split the difference.

The SCI finished modestly lower on Thursday as losses from the financials and properties were offset by support from the resource companies.

For the day, the index dipped 7.88 points or 0.22 percent to finish at 3,524.74 after trading between 3,513.45 and 3,538.40. The Shenzhen Composite Index fell 8.66 points or 0.35 percent to end at 2,478.34.

Among the actives, Industrial and Commercial Bank of China and China Merchants Bank both shed 0.43 percent, while Bank of China lost 0.66 percent, China Construction Bank skidded 1.00 percent, Bank of Communications fell 0.46 percent, China Life Insurance retreated 1.56 percent, Jiangxi Copper soared 4.47 percent, Aluminum Corp of China (Chalco) surged 4.71 percent, Yanzhou Coal skyrocketed 7.38 percent, PetroChina dipped 0.22 percent, China Petroleum and Chemical (Sinopec) rose 0.25 percent, China Shenhua Energy eased 0.11 percent, Gemdale plummeted 4.48 percent, Poly Developments declined 1.35 percent, China Vanke plunged 2.03 percent and China Fortune Land Development sank 1.15 percent.

The lead from Wall Street suggests mild upside as the major averages opened lower on Thursday but gradually broke into positive territory as the day progressed, ending in the green.

The Dow rose 14.48 points or 0.04 percent to finish at 35,499.85, while the NASDAQ added 51.13 points or 0.35 percent to close at 14,816.26 and the S&P 500 gained 13,13 points or 0.30 percent to end at 4,460.83.

The choppy trading on Wall Street comes as traders digest separate reports from the Labor Department on weekly jobless claims and producer price inflation.

The Labor Department said initial jobless claims edged down to 375,000 last week, a decrease of 12,000 from the previous week’s revised level of 387,000. Also, the Labor Department said its producer price index for final demand surged 1.0 percent in July, matching the jump in June.

Crude oil prices drifted lower Thursday on concerns about outlook for energy demand after an International Energy Agency report said oil demand growth will likely ebb in the second half of the year. West Texas Intermediate Crude oil futures for September ended down by $0.16 or 0.2 percent at $69.09 a barrel.