The China stock market jumped higher again on Monday, one session after halting the five-day winning streak in which it had soared more than 150 points or 4.8 percent. The Shanghai Composite Index now rests just above the 3,025-point plateau and it’s looking at another firm lead for Tuesday.
The global forecast for the Asian markets is firm thanks to solid economic data, rising oil prices and expected bargain hunting. The European and U.S. markets were up and the Asian bourses are tipped to follow that lead.
The SCI finished sharply higher on Monday on bargain hunting following heavy losses in the previous session – particularly among the financials and oil and insurance companies.
For the day, the index spiked 57.13 points or 1.92 percent to finish at 3,026.99 after trading between 2,963.58 and 3,028.25. The Shenzhen Composite Index skyrocketed 62.54 points or 3.90 percent to end at 1,667.82.
Among the actives, Industrial and Commercial Bank of China added 0.36 percent, while Bank of China climbed 1.07 percent, China Construction Bank collected 0.87 percent, China Merchants Bank shed 0.81 percent, China Life Insurance spiked 2.27 percent, Ping An Insurance rose 0.13 percent, PetroChina perked 0.65 percent, China Petroleum and Chemical (Sinopec) gained 0.34 percent, China Shenhua Energy was up 0.45 percent, Gemdale advanced 0.51 percent, Poly Developments eased 0.08 percent and China Vanke gathered 0.18 percent.
The lead from Wall Street is broadly positive thanks to bargain hunting after a rough couple of sessions. The major averages opened in the green on Monday and stayed there throughout the session.
The Dow added 200.64 points or 0.79 percent to 25,650.88, while the NASDAQ spiked 149.92 points or 2.02 percent to 7,558.06 and the S&P 500 jumped 40.23 points or 1.47 percent to 2,783.30.
The rally on Wall Street came following a