China Stock Market Poised To Add To Its Winnings

The China stock market has alternated between positive and negative finishes through the last four trading days since the end of the three-day winning streak in which it had advanced almost 60 points or 2 percent. The Shanghai Composite Index now rests just beneath the 3,095-point plateau and it may see additional support on Wednesday.

The global forecast for the Asian markets is upbeat on easing concerns over interest rates and an economic slowdown. The European and U.S. markets were sharply higher and the Asian bourses are tipped to open in similar fashion.

The SCI finished modestly higher on Tuesday following gains from the resource stocks and mixed performances from the financials and properties.

For the day, the index gained 19.95 points or 0.65 percent to finish at the daily high of 3,093.70 after moving as low as 3,057.64. The Shenzhen Composite Index improved 14.04 points or 0.73 percent to end at 1,940.05.

Among the actives, Industrial and Commercial Bank of China fell 0.43 percent, while Bank of China collected 0.31 percent, China Construction Bank shed 0.67 percent, China Merchants Bank soared 4.64 percent, Bank of Communications lost 0.60 percent, China Life Insurance rose 0.36 percent, Jiangxi Copper advanced 0.93 percent, Aluminum Corp of China (Chalco) gained 0.87 percent, Yankuang Energy strengthened 1.63 percent, PetroChina climbed 1.16 percent, China Petroleum and Chemical (Sinopec) increased 0.46 percent, Huaneng Power plunged 3.02 percent, China Shenhua Energy jumped 1.39 percent, Gemdale perked 0.23 percent, Poly Developments was up 0.06 percent, China Vanke improved 1.01 percent, China Fortune Land tumbled 2.72 percent, Beijing Capital Development plummeted 4.25 percent and China Minsheng Bank was unchanged.

The lead from Wall Street is broadly positive as the major averages opened higher and remained that way throughout the session, ending firmly in the green.

The Dow soared 431.17 points or 1.34 percent to finish at 32,654.59, while the NASDAQ spiked 321.52 points or 2.76 percent to end at 11,984.52 and the S&P 500 rallied 80.84 points or 2.02 percent to close at 4,088.85.

The markets rallied on comments from Fed Chair Jerome Powell, who said he is confident that the central bank can raise rates and deal with inflation without sending the economy into recession.

Strong retail sales and industrial production data added to the positive sentiment.

Crude oil prices pared early gains and settled lower Tuesday, reacting to reports that the Biden administration is set to ease some of the sanctions imposed on Venezuela. West Texas Intermediate Crude oil futures for June ended lower by $1.80 or 1.6 percent at $112.40 a barrel.

Closer to home, China will see April numbers for its house price index later today; in March, prices were up 1.5 percent on year.