The China stock market has moved lower in five straight sessions, surrendering almost 170 points or 6 percent along the way. The Shanghai Composite Index now rests just above the 2,775-point plateau although it’s finally looking at a green light for Wednesday’s trade.
The global forecast for the Asian markets is upbeat on bargain hunting following heavy selling pressure in recent sessions. The European markets were down but the U.S. bourses were up and the Asian markets are tipped to follow the latter lead.
The SCI finished sharply lower again on Tuesday following losses from the financials and oil and insurance companies, although the properties offered support.
For the day, the index tumbled 43.94 points or 1.56 percent to finish at 2,777.56 after trading between 2,733.92 and 2,787.42. The Shenzhen Composite Index plunged 26.97 points or 1.78 percent to end at 1,490.30.
Among the actives, Industrial and Commercial Bank of China skidded 1.28 percent, while Bank of China retreated 1.40 percent, China Construction Bank and China Petroleum and Chemical (Sinopec) both dropped 0.99 percent, China Merchants Bank sank 0.94 percent, China Life Insurance shed 0.49 percent, Ping An Insurance eased 0.12 percent, PetroChina tumbled 1.44 percent, China Shenhua Energy fell 1.05 percent, Gemdale jumped 1.57 percent, Poly Developments perked 1.05 percent, China Vanke added 0.04 percent and CITIC Securities lost 0.43 percent.
The lead from Wall Street is firm as stocks showed a strong move to the upside on Tuesday, recovering from heavy selling over the past few days.
The Dow climbed 311.78 points or 1.21 percent to 26,029.52, while the NASDAQ jumped 107.23 points or 1.39 percent to 7,833.27 and the S&P 500 rose 37.03 points or 1.30 percent to 2,881.77.
The strength on Wall Street was partly due to bargain hunting, with traders picking up stocks at reduced