BEIJING (dpa-AFX) - The China stock market on Tuesday wrote a finish to the two-day losing streak in which it had plummeted more than 310 points or 10 percent. The Shanghai Composite Index now rests just beneath the 2,785-point plateau and it's expected to open in the green again on Wednesday.
The global forecast for the Asian markets is broadly positive as investors continue to look for bargains after last week's heavy selling. The European and U.S. markets were sharply higher and the Asian bourses are tipped to follow suit.
The SCI finished sharply higher on bargain hunting among the financials, properties and oil and insurance companies.
For the day, the index advanced 36.68 points or 1.34 percent to finish at 2,783.29 after trading between 2,685.27 and 2,786.16. The Shenzhen Composite Index jumped 29.02 points or 1.80 percent to end at 1,638.02.
Among the actives, Industrial and Commercial Bank of China climbed 1.48 percent, while Bank of China jumped 2.04 percent, China Construction Bank advanced 3.73 percent, China Merchants Bank collected 0.91 percent, China Life Insurance soared 4.73 percent, Ping An Insurance perked 3.50 percent, PetroChina added 0.78 percent, China Petroleum and Chemical (Sinopec) rose 0.43 percent, China Shenhua Energy gathered 1.69 percent, Gemdale gained 2.77 percent, Poly Developments increased 2.36 percent and China Vanke surged 3.72 percent.
The lead from Wall Street is upbeat as stocks moved sharply higher on Tuesday, extending gains from the previous session after last week's selloff.
The Dow jumped 407.82 points or 1.44 percent to end at 28,807.63, while the NASDAQ surged 194.57 points or 2.10 percent to 9,467.57 and the S&P 500 climbed 48.67 points or 1.50 percent to 3,297.59.
The rally on Wall Street came as traders seem to expect China to announce additional stimulus measures to boost the economy amid the fallout from the coronavirus outbreak.
The coronavirus has now claimed 425 lives and infected more than 20,000 people in mainland China, with efforts to contain the outbreak expected to stifle the Chinese economy.
In economic news, the Commerce Department said new orders for U.S. manufactured goods spiked by more than anticipated in December.
Crude oil futures failed to hold early gains and settled lower on Tuesday, weighed by concerns over the outlook for energy demand amid the rapidly spreading coronavirus outbreak in China. West Texas Intermediate Crude Oil futures ended down $0.50 or 1 percent at $49.61 a barrel.
Closer to home, China will see January numbers for the services and composite indexes from Caixin later this morning; their previous scores were 52.5 and 52.6, respectively.
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