BEIJING (dpa-AFX) - The China stock market on Tuesday wrote a finish to the three-day losing streak in which it had fallen more than 60 points or 1.9 percent. The Shanghai Composite Index now rests just above the 3,250-point plateau and it's expected to extend its gains on Wednesday.
The global forecast for the Asian markets is upbeat on positive earnings news and support from crude oil prices. The European and U.S. markets were up and the Asian bourses are tipped to follow suit.
The SCI finished sharply higher on Tuesday with gains across the board - particularly from the financials, properties and oil and insurance companies.
For the day, the index soared 75.81 points or 2.39 percent to finish at the daily high of 3,253.60 after moving as low as 3,153.21. The Shenzhen Composite Index spiked 36.11 points or 2.09 percent to end at 1,760.02.
Among the actives, Industrial and Commercial Bank of China spiked 3.27 percent, while China Construction Bank soared 4.88 percent, Bank of China jumped 2.83 percent, China Merchants Bank climbed 3.39 percent, China Life Insurance advanced 3.94 percent, Ping An Insurance gained 4.10 percent, PetroChina added 1.58 percent, China Petroleum and Chemical (Sinopec) gained 1.55 percent, China Shenhua Energy perked 1.95 percent, Gemdale rose 0.67 percent, Poly Developments surged 4.62 percent, China Vanke collected 2.26 percent and CITIC Securities accelerated 2.94 percent.
The lead from Wall Street suggests mild upside as stocks fluctuated on Tuesday but managed to finish in the green.
The Dow added 67.89 points or 0.26 percent to 26,452.66, while the NASDAQ gained 24.21 points or 0.30 percent to 8,000.23 and the S&P 500 rose 1.48 points or 0.05 percent to 2,907.06.
Early buying interest was generated in reaction to solid earnings news from Dow components Johnson & Johnson (JNJ) and UnitedHealth (UNH).
The buying interest was offset by Federal Reserve report showing industrial production unexpectedly fell in March. Also, the National Association of Home Builders noted a modest improvement in U.S. homebuilder confidence in April.
Crude oil prices moved higher on Tuesday amid prospects of tight supply conditions in the market. West Texas Intermediate Crude oil futures for May ended up $0.65 or 1 percent at $64.05 a barrel.
Closer to home, China will release a raft of data later this morning, including Q1 figures for gross domestic product, as well as March numbers for industrial production, retail sales, unemployment and fixed asset investment.
GDP is expected to have added 1.4 percent on quarter and 6.3 percent on year, slowing from 1.5 percent on quarter and 6.4 percent on year in the three months prior.
Industrial production is predicted to gain 6.0 percent on year, up from 5.3 percent in February. Retail sales are expected to climb an annual 8.4 percent, up from 8.2 percent a month earlier. Fixed asset investment is tipped to rise 6.3 percent on year, up from 6.1 percent in the previous month. The jobless rate is called steady at 5.3 percent.
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