BEIJING (dpa-AFX) - The China stock market has moved lower in back-to-back trading days, sliding more than 50 points or 1.8 percent along the way. The Shanghai Composite Index now rests just above the 2,850-point plateau and it's expected to open under pressure again on Friday.
The global forecast for the Asian markets is unfriendly on plummeting oil prices and unhelpful global trade rhetoric. The European and U.S. markets were sharply lower and the Asian bourses are also tipped to open in the red.
The SCI finished sharply lower on Thursday following losses from the financials, properties and insurance companies, although the oil stocks offered mild support.
For the day, the index retreated 39.18 points or 1.35 percent to finish at 2,852.52 after trading between 2,846.96 and 2,885.14. The Shenzhen Composite Index plunged 37.48 points or 2.43 percent to end at 1,503.37.
Among the actives, Bank of China shed 0.52 percent, while China Construction Bank lost 0.29 percent, China Merchants Bank fell 0.54 percent, China Life Insurance skidded 1.22 percent, Ping An Insurance tumbled 1.44 percent, PetroChina added 0.14 percent, China Petroleum and Chemical (Sinopec) rose 0.18 percent, China Shenhua Energy sank 0.92 percent, Gemdale dropped 1.36 percent, Poly Developments retreated 1.33 percent, China Vanke plunged 2.34 percent, CITIC Securities was down 0.45 percent and Industrial and Commercial Bank of China was unchanged.
The lead from Wall Street is negative as stocks saw significant weakness on Thursday, extending recent weakness.
The Dow shed 286.14 points or 1.11 percent to finish at 25,490.47, while the NASDAQ lost 122.56 points or 1.58 percent to 7,628.28 and the S&P fell 34.03 points or 1.19 percent to 2,822.24.
Lingering trade concerns contributed to the sell-off on Wall Street amid further indications of rising tensions between the U.S. and China. Trade talks collapsed earlier this month as President Donald Trump followed through on a threat to raise tariffs on $200 billion worth of Chinese goods to 25 percent from 10 percent.
In economic news, the Labor Department said initial jobless claims unexpectedly edged lower in the week ended May 18, while the Commerce Department said new home sales pulled back much more than anticipated in April.
Crude oil futures saw their biggest single-session decline in 2019 and closed at a two-month low on Thursday on concerns over a likely drop in energy demand. West Texas Intermediate crude oil futures for June ended down $3.51 or 5.7 percent at $57.91 a barrel, the lowest settlement since March 12.
Copyright RTT News/dpa-AFX