BEIJING (dpa-AFX) - The China stock market has finished lower in two straight sessions, although it has given up not even two points in that span. The Shanghai Composite Index remains just beneath the 3,085-point plateau although it may stop the bleeding on Tuesday.
The global forecast for the Asian markets is cautiously optimistic as traders suspect the geopolitical concerns in the Middle East may be overdone - while surging crude oil prices also offer support. The European markets were down and the U.S. bourses were up and the Asian markets figure to follow the latter lead.
The SCI finished barely lower on Monday as losses from the financials and properties were offset by support from the energy producers.
For the day, the index eased 0.38 points or 0.01 percent to finish at 3,083.41 after trading between 3,065.31 and 3,107.20. The Shenzhen Composite Index gained 7.83 points or 0.44 percent to end at 1,768.68.
Among the actives, Industrial and Commercial Bank of China shed 0.33 percent, while Bank of China lost 0.54 percent, China Construction Bank dropped 0.96 percent, China Merchants Bank fell 0.41 percent, China Life Insurance retreated 0.94 percent, Ping An Insurance declined 0.70 percent, PetroChina surged 4.71 percent, China Petroleum and Chemical (Sinopec) jumped 1.71 percent, China Shenhua Energy climbed 1.19 percent, Gemdale tumbled 1.79 percent, Poly Developments skidded 1.69 percent and China Vanke sank 1.68 percent.
The lead from Wall Street is positive as stocks opened sharply lower on Monday but bounced higher to finish in the green.
The Dow added 68.50 points or 0.24 percent to 28,703.38, while the NASDAQ gained 50.70 points or 0.56 percent to 9.071.46 and the S&P 500 rose 11.43 points or 0.35 percent to 3,246.28.
The initial weakness on Wall Street came as rising geopolitical tensions continued to weigh on the markets. Washington and Tehran continue to engage in an escalating war of words after the U.S. killed top Iranian military commander Qasem Soleimani in an airstrike last week.
Selling pressure waned shortly after the start of trading, however, as traders seem optimistic that the bluster will not amount to much and that tensions will eventually subside without a major impact on the global economy.
Crude oil prices moved higher on Monday amid concerns about possible supply disruptions due to an escalation in tensions in the Middle East. West Texas Intermediate crude oil futures for February ended up $0.22 or 0.4 percent at $63.27 a barrel.
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