BEIJING (dpa-AFX) - The China stock market has finished higher in two of three days since the end of the seven-day losing streak in which it had surrendered almost 300 points or 10.2 percent. The Shanghai Composite Index now rests just above the 2,720-point plateau and it may add to its winnings on Wednesday.
The global forecast for the Asian markets is broadly positive on optimism that a massive stimulus bill from the U.S. Congress is close at hand. The European and U.S. markets finished with huge gains and the Asian bourses are now tipped to open in the green.
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 62.27 points or 2.34 percent to finish at 2,722.44 after trading between 2,667.13 and 2,723.41. The Shenzhen Composite Index advanced 34.34 points or 2.10 percent to end at 1,666.22.
Among the actives, Industrial and Commercial Bank of China climbed 2.61 percent, while Bank of China collected 1.16 percent, China Construction Bank jumped 3.24 percent, China Merchants Bank advanced 4.48 percent, China Life Insurance accelerated 4.89 percent, Ping An Insurance perked 3.28 percent, PetroChina added 0.62 percent, China Petroleum and Chemical (Sinopec) gained 1.13 percent, China Shenhua Energy soared 5.41 percent, Gemdale surged 5.19 percent, Poly Developments increased 3.13 percent and China Vanke was up 1.43 percent.
The lead from Wall Street suggests major upside as stocks skyrocketed on Tuesday, cutting into the losses suffered in recent weeks due to concerns over the coronavirus.
The Dow skyrocketed 2,112.98 points or 11.37 percent to end at 20,704.91, while the NASDAQ soared 557.18 points or 8.12 percent to 7,417.86 and the S&P 500 surged 209.93 points or 9.3 percent to 2,447.33.
The rally on Wall Street came amid indications Democrats and Republicans are closing in on an agreement on a massive fiscal stimulus bill. Democrats are still pushing for increased oversight of a proposed $500 billion bailout fund to help industries that are struggling amid the coronavirus outbreak.
Traders were also reacting to President Donald Trump's comments suggesting the coronavirus-related shutdown of much of the country could end sooner than many anticipated - although that flies in contrast to what most health experts say.
Crude oil prices were higher Tuesday, extending gains from the previous session thanks to the Federal Reserve's massive asset-buying scheme. Optimism for a $2 trillion fiscal stimulus bill added to the positive sentiment. West Texas Intermediate Crude oil futures for May ended up $0.65 or 2.8 percent at $24.01 a barrel.
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