BEIJING (dpa-AFX) - The China stock market has finished higher in two of three trading days since the end of the three-day slide in which it had fallen more than 50 points or 1.7 percent. The Shanghai Composite Index now rests just above the 2,970-point plateau and it may add to its winnings on Tuesday.
The global forecast for the Asian markets is upbeat on hopes for stimulus following weeks of heavy selling. The European markets were mixed and the U.S. bourses were sharply higher and the Asian markets are tipped to follow the latter lead.
The SCI finished sharply higher on Monday following gains from the financial shares, property stocks and oil and insurance companies.
For the day, the index surged 90.63 points or 3.15 percent to finish at 2,970.93 after trading between 2,899.31 and 2,982.51. The Shenzhen Composite Index spiked 67.90 points or 3.77 percent to end at 1,869.65.
Among the actives, Industrial and Commercial Bank of China climbed 1.13 percent, while Bank of China jumped 1.41 percent, China Construction Bank spiked 1.38 percent, China Merchants Bank collected 1.61 percent, China Life Insurance accelerated 2.31 percent, Ping An Insurance advanced 2.39 percent, PetroChina perked 1.97 percent, China Petroleum and Chemical (Sinopec) gathered 2.17 percent, China Shenhua Energy soared 3.81 percent, Gemdale skyrocketed 7.20 percent, Poly Developments gained 3.09 percent, China Vanke surged 5.20 percent and CITIC Securities rose 4.62 percent.
The lead from Wall Street is broadly positive as stocks rebounded on Monday from the worst session since the 2008 financial crisis.
The Dow surged 1,293.96 points or 5.09 percent to end at 26,703.32, while the NASDAQ soared 384.80 points or 4.49 percent to 8,952.17 and the S&P 500 spiked 136.01 points or 4.60 percent to 3,090.23.
The rebound on Wall Street was due to bargain hunting, with traders picking up stocks at reduced levels following the sell-off in recent sessions. Traders also seem optimistic about central banks around the world taking action to counteract the impact of the coronavirus on the global economy.
In economic news, the Institute for Supply Management reported a slight expansion in manufacturing activity in February. A separate report from the Commerce Department showed construction spending in the U.S. jumped by much more than expected in January.
Crude oil prices rallied sharply on Monday as traders bet on hopes that OPEC and its allies will significantly cut crude production. West Texas Intermediate Crude oil futures for April ended up $1.99 or 4.5 percent at $46.75 a barrel.
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