BEIJING (dpa-AFX) - The China stock market has finished lower in two of three trading days since the end of the three-day winning streak in which it had advanced more than 45 points or 1.8 percent. The Shanghai Composite Index now rests just above the 2,575-point plateau although it may bounce higher again on Wednesday.
The global forecast for the Asian markets is mixed to higher, due mainly to bargain hunting after heavy losses in recent sessions. The European markets were down and the U.S. bourses were up and the Asian markets are tipped to follow the latter lead.
The SCI finished modestly lower on Tuesday following losses from the financials, properties and oil and insurance companies.
For the day, the index sank 21.32 points or 0.82 percent to finish at 2,576.65 after trading between 2,563.57 and 2,599.15. The Shenzhen Composite Index slid 10.76 points or 0.81 percent to end at 1,312.55.
Among the actives, Industrial and Commercial Bank of China shed 0.37 percent, while Bank of China lost 0.55 percent, China Merchants Bank skidded 1.34 percent, China Construction Bank fell 0.75 percent, China Life Insurance slid 0.65 percent, Ping An Insurance retreated 0.69 percent, PetroChina dropped 1.17 percent, China Petroleum and Chemical (Sinopec) tumbled 2.68 percent, China Shenhua Energy contracted 2.00 percent, Gemdale plunged 3.68 percent, Poly Developments declined 3.62 percent and China Vanke plummeted 3.85 percent.
The lead from Wall Street is cautiously optimistic as stocks experienced substantial volatility on Tuesday, fluctuating wildly before closing in positive territory.
The Dow added 82.66 points or 0.35 percent to 23,675.64, while the NASDAQ gained 30.18 points or 0.45 percent to 6,783.91 and the S&P was up 0.22 points or 0.01 percent to 2,546.16.
The initial strength on Wall Street was partly due to bargain hunting, with traders picking up stocks at reduced levels on the heels of the sharp drop in the two previous sessions.
The subsequent volatility came as traders remained on edge ahead of Wednesday's Federal Reserve monetary policy announcement. With the Fed widely expected to raise interest rates by a quarter point, traders will closely scrutinize the central bank's accompanying statement and forecasts for clues about future rate hikes.
In economic news, the Commerce Department noted a substantial increase in U.S. housing starts in November, while building permits also surged.
Crude oil prices plunged sharply on Tuesday amid rising concerns about excess supply in the market. For the month of January, futures plummeted $3.64 or 7.3 percent to $46.24 per barrel.
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