BEIJING (dpa-AFX) - The China stock market has finished higher in two of three trading days since the end of the three-day losing streak in which it had retreated more than 40 points or 1.3 percent. The Shanghai Composite Index now rests just shy of the 2,900-point plateau and it's likely to open to the upside again on Wednesday.
The global forecast for the Asian markets is firm on renewed optimism for trade and interest rates. The European and U.S. markets were up and the Asian bourses are tipped to follow that lead.
The SCI finished modestly higher on Tuesday as gains from the financials and securities were offset by weakness from the properties and insurance companies.
For the day, the index gained 12.97 points or 0.45 percent to finish at 2,899.94 after trading between 2,883.05 and 2,901.36. The Shenzhen Composite Index rose 13.45 points or 0.88 percent to end at 1,545.87.
Among the actives, Industrial and Commercial Bank of China added 0.35 percent, while Bank of China collected 0.54 percent, China Merchants Bank shed 0.44 percent, China Construction Bank advanced 0.97 percent, China Life Insurance tumbled 1.49 percent, Ping An Insurance dipped 0.21 percent, China Shenhua Energy lost 0.78 percent, Gemdale sank 0.63 percent, Poly Developments dropped 1.38 percent, China Vanke plunged 3.54 percent, CITIC Securities rose 0.31 percent and PetroChina and China Petroleum and Chemical (Sinopec) were unchanged.
The lead from Wall Street is positive as stocks shook off a lackluster open on Tuesday to move higher in the afternoon and finish firmly in the green.
The Dow added 177.29 points or 0.65 percent to 27,349.19, while the NASDAQ gained 47.27 points or 0.58 percent to 8,251.40 and the S&P 500 rose 20.44 points or 0.68 percent to 3,005.47.
The afternoon advance came on the heels of reports indicating U.S. officials will soon travel to China for face-to-face trade talks sometime next week.
That news offset mixed earnings data as Coca-Coca (KO) and United Technologies (UTX) beat the street, while Travelers (TRV) missed expectations.
The early buying interest was partly offset when the National Association of Realtors reported a sharp pullback in existing home sales in June. That reinforces expectations of a near-term interest rate by the Federal Reserve but may raises concerns about a more severe economic downturn.
Crude oil futures settled higher on Tuesday amid continued worries about tensions in the Middle East. West Texas Intermediate Crude oil futures for September ended up $0.55 or 1 percent at $56.77 a barrel.
Copyright RTT News/dpa-AFX