China Stock Market May Test Resistance At 2,900 Points

The China stock market has moved higher in three straight sessions, gaining more than 120 points or 4.2 percent following Monday’s brutal selloff. The Shanghai Composite Index now rests just above the 2,865-point plateau and it’s likely to find additional support again on Friday.

The global forecast for the Asian markets is upbeat on optimism for further resolution in the trade dispute between the United States and China. The European and U.S. markets were up and the Asian bourses are tipped to open in similar fashion.

The SCI finished sharply higher on Thursday following gains from the financial shares, property stocks and oil and insurance companies.

For the day, the index spiked 48.42 points or 1.72 percent to finish at 2,866.51 after trading between 2,807.61 and 2,876.59. The Shenzhen Composite Index soared 48.60 points or 2.90 percent to end at 1,727.24.

Among the actives, Industrial and Commercial Bank of China rose 0.18 percent, while Bank of China collected 0.29 percent, China Construction Bank shed 0.30 percent, China Merchants Bank climbed 1.10 percent, China Life Insurance added 0.66 percent, Ping An Insurance perked 1.42 percent, PetroChina jumped 1.15 percent, China Petroleum and Chemical (Sinopec) advanced 1.29 percent, China Shenhua Energy was up 0.18 percent, Gemdale gained 0.90 percent, Poly Developments gathered 0.48 percent and China Vanke spiked 0.94 percent.

The lead from Wall Street is positive as stocks fluctuated early Thursday but then moved higher as the day progressed – sending the major averages to fresh record closing highs.

The Dow added 88.92 points or 0.30 percent to end at 29,379.77, while the NASDAQ gained 63.47 points or 0.67 percent to 9,572.15 and the S&P 500 rose 11.09 points or 0.33 percent to 3,345.78.

The continued strength on Wall Street came on the heels of news that China plans to cut

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