The China stock market bounced higher again on Monday, one session after it had ended the five-day winning streak in which it had jumped almost 100 points or 3 percent. The Shanghai Composite Index now sits just beneath the 3,380-point plateau and it may add to its winnings on Tuesday.
The global forecast for the Asian markets is cautiously optimistic on hopes for stimulus in the United States, although tech shares are expected to see further profit taking. The European markets were up and the U.S. bourses were mixed and the Asian markets figure to split the difference.
The SCI finished modestly higher on Monday following gains from the financial shares, property stocks and oil and insurance companies.
For the day, the index advanced 25.22 points or 0.75 percent to finish at 3,379.25 after trading between 3,335.04 and 3,399.93. The Shenzhen Composite Index added 4.76 points or 0.21 percent to end at 2,277.42.
Among the actives, Industrial and Commercial Bank of China collected 0.20 percent, while Bank of China added 0.30 percent, China Construction Bank gained 0.49 percent, China Merchants Bank climbed 1.07 percent, China Life Insurance surged 5.31 percent, Ping An Insurance advanced 0.89 percent, PetroChina perked 0.45 percent, China Petroleum and Chemical (Sinopec) rose 0.25 percent, Baoshan Iron increased 0.82 percent, Gemdale soared 3.86 percent, Poly Developments spiked 3.17 percent and China Vanke rallied 2.89 percent.
The lead from Wall Street suggests mild upside as stocks moved mostly higher on Monday, although the tech-heavy NASDAQ ended in the red.
The Dow jumped 357.94 points or 1.30 percent to finish at 27,791.44, while the NASDAQ slid 42.64 points or 0.39 percent to end at 10,968.36 and the S&P 500 rose 9.19 points or 0.27 percent to close at 3,360.47.
The strength on Wall Street came after President Donald Trump signed executive orders aimed at extending coronavirus relief to Americans after lawmakers failed to reach an agreement on a new coronavirus relief package.
Concerns about rising tensions between the U.S. and China also helped to keep buying interest somewhat subdued on the day.
Crude oil prices climbed higher Monday as optimism about energy demand rose after solid factory data from China and hopes for virus-related stimulus in the U.S. West Texas Intermediate Crude oil futures for September ended up $0.72 or 1.7 percent at $41.94 a barrel.
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