BEIJING (dpa-AFX) - The China stock market has finished lower in three straight sessions, giving away almost 75 points or 2.3 percent along the way. The Shanghai Composite Index rests just above the 3,200-point plateau although it's looking at a positive lead for Monday.
The global forecast for the oversold Asian markets is cautiously optimistic, with bargain hunting expected amid a bounce in crude oil prices. The European markets were down and the U.S. bourses were up, and the Asian markets figure to follow the latter lead.
The SCI finished sharply lower on Friday following losses from the property and resource stocks, while the financials came in mixed.
For the day, the index tumbled 53.21 points or 1.63 percent to finish at 3,208.54 after trading between 3,200.75 and 3,245.12. The Shenzhen Composite Index skidded 30.0 points or 1.6 percent to end at 1,842.60.
Among the actives, Agricultural Bank of China collected 0.27 percent, while Industrial and Commercial Bank of China added 0.54 percent, Bank of China shed 0.75 percent, Vanke plummeted 3.75 percent, Gemdale tumbled 3.61 percent, PetroChina dropped 1.48 percent, China Life shed 0.37 percent, Ping An skidded 2.27 percent and Zijin Mining retreated 3.96 percent.
The lead from Wall Street suggests mild upside as stocks moved higher on Friday after a few sessions of heavy selling.
The Dow added 14.31 points or 0.1 percent to 21,858.32, while the NASDAQ climbed 39.68 points or 0.6 percent to 6,256.56, and the S&P gained 3.11 points or 0.1 percent to 2,441.32. For the week, the Dow shed 1.1 percent, the NASDAQ tumbled 1.5 percent and the S&P was down 1.4 percent.
The strength was partly due to bargain hunting, with traders picking up stocks at reduced levels following the pullback in the past few sessions.
Positive sentiment also followed a report from the Labor Department showing just a modest uptick in consumer prices in July. The smaller than expected increase in inflation led to optimism that the Federal Reserve will not hurry to raise interest rates.
Buying interest was subdued, however, as the escalating war of words between President Donald Trump and North Korea continued to raise geopolitical concerns.
Crude oil futures rose Friday, trimming weekly losses after a report showed global oil demand is rebounding. September WTI oil futures were up 23 cents or 0.5 percent to $48.82/bbl, but were down 1.5 percent for the week.
Closer to home, China will provide July numbers for retail sales, industrial production and fixed asset investment this morning.
Retail sales are expected to gain 10.8 percent on year, slowing from 11.0 percent in June. Output is pegged at 7.1 percent, down from 7.6 percent in the previous month. FAI is called steady at 8.6 percent.
Copyright RTT News/dpa-AFX