BEIJING (dpa-AFX) - The China stock market has moved higher in two three consecutive trading days, gathering almost 40 points or 1.3 percent. The Shanghai Composite Index now rests just above the 3,115-point plateau and it's looking at another firm lead for Thursday.
The global forecast for the Asian markets is firm, with support expected from the financial shares although weakness from the oil stocks may limit the upside. The European and U.S. markets were up and the Asian markets are expected to follow suit.
The SCI finished barely higher on Wednesday as gains were wiped out by weakness from the financials, properties and oil and insurance stocks.
For the day, the index added 0.97 points or 0.03 percent to finish at 3,115.18 after trading between 3,103.53 and 3,117.53. The Shenzhen Composite Index added 1.42 points or 0.08 percent to end at 1,779.15.
Among the actives, China Construction Bank fell 0.70 percent, while Agricultural Bank of China retreated 0.82 percent, Bank of China shed 0.53 percent, Bank of Communications dipped 0.33 percent, Industrial and Commercial Bank of China lost 0.88 percent, China Merchants Bank skidded 1.57 percent, China Life tumbled 1.15 percent, Ping An Insurance tumbled 1.19 percent, China Petroleum and Chemical (Sinopec) dropped 0.91 percent and China Vanke plummeted 1.82 percent.
The lead from Wall Street is broadly positive as stocks moved mostly higher on Wednesday after initially showing a lack of direction. The NASDAQ hit another new record closing high, while the Dow and the S&P 500 both rose to their best closing levels in nearly three months.
The Dow soared 346.41 points or 1.40 percent to 25,146.39, the NASDAQ climbed 51.38 points or 0.67 percent to 7,689.24 and the S&P 500 added 23.55 points or 0.86 percent to 2,772.35.
Financial stocks led the upward move on Wall Street amid a pullback by U.S. treasuries after European Central Bank chief economist Peter Praet said the ECB will discuss ending its bond purchasing program next week.
In economic news, the Commerce Department said the U.S. trade deficit unexpectedly narrowed in April. Also, the Labor Department said labor productivity in the U.S. increased less than estimated in the first quarter.
Crude oil futures tumbled Wednesday as U.S. oil and gasoline inventories spiked higher, hinting at a drop in demand. July WTI oil settled at $64.73/bbl, down 79 cents or 1.2 percent near a recent two-month low.
Copyright RTT News/dpa-AFX