BEIJING (dpa-AFX) - The China stock market on Monday halted the six-day slide in which it had retreated more than 85 points or 2.8 percent. The Shanghai Composite Index now rests just above the 2,850-point plateau and it may add to its winnings on Tuesday.
The global forecast for the Asian markets is firm on easing trade tensions between the United States and Mexico. The European and U.S. bourses were up and the Asian markets are tipped to follow that lead.
The SCI finished modestly higher on Monday following gains from the financials, properties and oil and insurance companies.
For the day, the index picked up 24.33 points or 0.86 percent to finish at 2,852.13 after trading between 2,824.36 and 2,861.13. The Shenzhen Composite Index climbed 126.85 points or 1.48 percent to end at 8,711.79.
Among the actives, Industrial and Commercial Bank of China added 0.87 percent, while Bank of China collected 0.54 percent, China Construction Bank jumped 1.68 percent, China Life Insurance gathered 1.46 percent, Ping An Insurance soared 2.58 percent, PetroChina rose 0.28 percent, China Petroleum and Chemical (Sinopec) climbed 1.09 percent, China Shenhua Energy advanced 1.54 percent, Gemdale was up 0.26 percent, Poly Developments accelerated 1.99 percent and China Vanke surged 2.54 percent.
The lead from Wall Street is positive as stocks opened sharply higher Monday, faded a bit in the afternoon but still finished firmly in the green.
The Dow added 78.74 points or 0.30 percent to 26,062.68, while the NASDAQ gained 81.07 points or 1.05 percent to 7,823.17 and the S&P 500 rose 13.39 points or 0.47 percent to 2,886.73.
The morning rally came in reaction to news the U.S. and Mexico have reached an agreement to avert President Donald Trump's threatened tariffs on all Mexican imports.
Trump also said that existing tariffs on Chinese imports will force China to make a deal and threatened to impose more tariffs if Chinese President Xi Jinping does not attend a planned meeting at the G-20 summit later this month.
Crude oil futures ended lower Monday as concerns over near term energy demand outweighed prospects of a likely extension of production cuts by OPEC. West Texas Intermediate Crude oil futures for July ended down $0.73 or 1.4 percent at $53.26 a barrel.
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