The China stock market has climbed higher in three straight sessions, gathering more than 40 points or 1.2 percent along the way. The Shanghai Composite Index now rests just above the 3,460-point plateau although it’s expected to run out of steam on Thursday.
The global forecast for the Asian markets suggests consolidation on rising inflation and concerns over the outlook for interest rates. The European markets were up and the U.S. bourses were sharply lower and the Asian markets are tipped to open in the red.
The SCI finished modestly higher on Wednesday following gains from the resource stocks and mixed performances from the financial shares and properties.
For the day, the index advanced 20.91 points or 0.61 percent to finish at 3,462.75 after trading between 3,428.39 and 3,466.37. The Shenzhen Composite Index gained 19.85 points or 0.88 percent to end at 2,271.81.
Among the actives, Industrial and Commercial Bank of China collected 0.57 percent, while Bank of China rose 0.31 percent, China Construction Bank jumped 1.16 percent, China Merchants Bank fell 0.28 percent, Bank of Communications dipped 0.20 percent, China Life Insurance shed 0.45 percent, Jiangxi Copper climbed 1.03 percent, Aluminum Corp of China (Chalco) gathered 1.21 percent, Yanzhou Coal advanced 0.81 percent, PetroChina spiked 2.85 percent, China Petroleum and Chemical (Sinopec) perked 1.12 percent, China Shenhua Energy rallied 1.75 percent, Gemdale skidded 1.17 percent, Poly Developments plunged 2.32 percent, China Vanke tanked 2.14 percent, China Fortune Land added 0.38 percent and Beijing Capital Development gained 0.54 percent.
The lead from Wall Street is broadly negative as stocks opened in the red on Wednesday and the losses only accelerated as the day progressed.
The Dow plunged 681.50 points or 1.99 percent to finish at 33,587.66, while the NASDAQ tumbled 357.75 points or 2.67 percent to end at 13,031.68 and the S&P 500 sank 89.06 points or 2.14 percent to close at 4,063.04.
The sell-off on Wall Street came amid concerns about the accelerating pace of inflation after the Labor Department said consumer prices rose much more than expected in April.
The significantly faster price growth raised concerns about the outlook for monetary policy even though the Federal Reserve has repeatedly downplayed the risks of inflation.
Crude oil prices moved higher on Wednesday on optimism about the outlook for energy demand and data showing a drop in crude stockpiles last week. West Texas Intermediate Crude oil futures for June ended up by $0.80 or 1.2 percent at $66.08 a barrel.
Market Analysis
China Bourse Tipped To Snap Winning Streak
2021-05-13 00:00:13
