BEIJING (dpa-AFX) - The China stock market has climbed higher in three straight sessions, advancing almost 110 points or 3.6 percent along the way. The Shanghai Composite Index now rests just above the 3,020-point plateau and it may add to its winnings on Wednesday.
The global forecast for the Asian markets suggests little movement, although inertia may promote mild support. The European markets were mixed and the U.S. bourses were slightly higher and the Asian markets figure to split the distance.
The SCI finished sharply higher on Tuesday following gains from the financial shares, property stocks and oil and insurance companies.
For the day, the index jumped 38.03 points or 1.27 percent to finish at 3,022.42 after trading between 2,982.50 and 3,039.38. The Shenzhen Composite Index advanced 22.37 points or 1.33 percent to end at 1,708.78.
Among the actives, Industrial and Commercial Bank of China climbed 1.04 percent, while Bank of China collected 0.82 percent, China Construction Bank advanced 1.12 percent, China Merchants Bank added 0.59 percent, China Life Insurance rose 0.31 percent, Ping An Insurance perked 0.57 percent, PetroChina jumped 1.39 percent, China Petroleum and Chemical (Sinopec) accelerated 1.40 percent, China Shenhua Energy spiked 1.61 percent, Gemdale soared 2.31 percent, Poly Developments increased 1.91 percent and China Vanke surged 3.40 percent.
The lead from Wall Street is cautiously optimistic as the major averages were fairly lackluster on Tuesday, although they managed to inch higher to fresh record closing highs.
The Dow added 31.27 points or 0.11 percent to 28,267.16, while the NASDAQ gained 9.13 points or 0.10 percent to 8,823.36 and the S&P 500 rose 1.07 points or 0.03 percent to 3,192.52.
The choppy trading on Wall Street came as traders seemed reluctant to make any significant moves as they wait to determine the next catalyst that will drive the markets.
In the meantime, they seemed reluctant to cash in on recent strength in the markets amid the release of a batch of upbeat U.S. economic data as the Commerce Department reported a bigger than expected spike in housing starts in November.
A separate report from the Fed showed U.S. industrial production rebounded by more than expected last month.
The price of crude oil saw further upside on Tuesday, benefitting from optimism that the phase one U.S.-China trade deal will lead to an increase in energy demand. Crude for January delivery climbed $0.73 to a three-month closing high of $60.94 a barrel, rising for the fourth straight day.
Copyright RTT News/dpa-AFX
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