BEIJING (dpa-AFX) - The China stock market has finished lower in two straight sessions, plummeting more than 115 points or 3.8 percent along the way. The Shanghai Composite Index now rests just above the 3,085-point plateau although it may find traction on Monday.
The global forecast for the Asian markets suggests mild upside, with optimism over strong U.S. GDP data offset by continued weakness in crude oil prices and mixed earnings news. The European and U.S. bourses were up and the Asian markets figure to open in similar fashion.
The SCI finished sharply lower again on Friday following losses from the financial shares, property stocks and oil companies.
For the day, the index tumbled 37.43 points or 1.20 percent to finish at 3,086.40 after trading between 3,085.80 and 3,129.21.
Among the actives, Industrial and Commercial Bank of China shed 0.35 percent, while Bank of China lost 0.77 percent, China Construction Bank dropped 0.95 percent, China Merchants Bank plunged 3.02 percent, China Life Insurance spiked 2.00 percent, Ping An Insurance slid 0.35 percent, PetroChina skidded 1.20 percent, China Petroleum and Chemical sank 1.22 percent, China Shenhua Energy retreated 0.87 percent, Gemdale added 0.08 percent, Poly Developments declined 0.45 percent, China Vanke was down 1.05 percent and CITIC Securities rose 0.38 percent.
The lead from Wall Street is positive as stocks shook off an early move to the downside, with the NASDAQ and S&P 500 ended at record closing highs.
The Dow added 81.25 points or 0.31 percent to 26,543.33, while the NASDAQ gained 27.72 points or 0.34 percent to 8,146.40 and the S&P 500 rose 13.71 points or 0.47 percent to 2,939.88. For the week, the Dow fell 0.1 percent, the NASDAQ rose 1.9 percent and the S&P 500 surged 1.2 percent.
The turnaround on Wall Street came as traders reacted to the Commerce Department's preliminary reading on first quarter GDP, which showed an unexpected acceleration in Q1.
Traders were also reacting to the latest batch of mixed earnings news from big-name companies as auto giant Ford (F) and online retail giant Amazon (AMZN) beating the street while Intel (INTC) reported better than expected results but provided disappointing guidance.
Crude oil prices declined for the third straight day on Friday on concerns for outlook of the global economy. Even a Baker Hughes report showing a significant drop in U.S. oil rig count didn't stop West Texas intermediate from tumbling $1.85 or 2.84 percent to $63.26 per barrel.
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