China Bourse May Test Resistance At 2,600 Points

The China stock market has moved higher in two of three trading days since the end of the four-day slide in which it had tumbled almost 75 points or 2.9 percent. The Shanghai Composite Index now rests just beneath the 2,590-point plateau and it’s looking at another green light again on Monday.

The global forecast for the Asian markets is broadly positive after the United States and China agreed to a truce in their trade war. The European markets were down and the U.S. bourses were up and the Asian markets are tipped for follow the latter lead.

The SCI finished modestly higher on Friday following gains from the financial shares, property stocks and oil companies.

For the day, the index collected 20.74 points or 0.81 percent to finish at 2,588.19 after trading between 2,555.32 and 2,590.21.

Among the actives, Gemdale rose 0.42 percent, while Poly Developments gathered 1.47 percent, China Vanke was up 0.59 percent, Bank of China added 0.56 percent, China Merchants Bank picked up 0.88 percent, China Construction Bank collected 0.30 percent, China life Insurance gained 0.47 percent, Ping An Insurance gathered 0.70 percent, PetroChina advanced 0.66 percent, China Petroleum and Chemical (Sinopec) climbed 1.20 percent, China Shenhua Energy jumped 1.24 percent and Industrial and Commercial Bank of China was unchanged.

The lead from Wall Street is upbeat as stocks shrugged off an early move to the downside on Friday, rebounding to finish in the green.

The Dow added 199.62 points or 0.79 percent to 25,538.46, the NASDAQ gained 57.45 points or 0.79 percent to 7,330.54 and the S&P was up 22.41 points or 0.82 percent to 2,760.17. For the week, the NASDAQ surged 5.6 percent, the Dow spiked 5.1 percent and the S&P added 4.8 percent.

The strength on Wall Street reflected optimism ahead of the

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