BEIJING (dpa-AFX) - The China stock market on Wednesday snapped the two-day winning streak in which it had advanced more than 30 points or 1 percent. The Shanghai Composite Index now rests just beneath the 2,885-point plateau although it's tipped to rebound on Thursday.
The global forecast for the Asian markets is broadly positive on optimism for economic recovery in the wake of the Covid-19 shutdown. The European and U.S. markets were sharply higher and the Asian markets are tipped to open in similar fashion.
The SCI finished modestly lower on Wednesday as losses from the property stocks and oil companies were mitigated by support from the financial shares.
For the day, the index lost 14.84 points or 0.51 percent to finish at 2,883.74 after trading between 2,876.18 and 2,896.47. The Shenzhen Composite Index dropped 17.71 points or 0.97 percent to end at 1,805.86.
Among the actives, Bank of China collected 0.29 percent, while China Construction Bank added 0.31 percent, China Merchants Bank climbed 1.20 percent, China Life Insurance rose 0.11 percent, Ping An Insurance was up 0.07 percent, PetroChina shed 0.67 percent, China Petroleum and Chemical (Sinopec) fell 0.46 percent, China Shenhua Energy lost 0.73 percent, Gemdale skidded 1.32 percent, Poly Developments sank 0.52 percent, China Vanke tumbled 1.99 percent and Industrial and Commercial Bank of China and China Minsheng Bank were unchanged.
The lead from Wall Street is upbeat as stocks showed a strong move to the upside on Wednesday, erasing the losses posted in the previous session.
The Dow climbed 369.04 points or 1.52 percent to finish at 24,575.90, while the NASDAQ surged 190.67 points or 2.08 percent to 9,375.78 and the S&P 500 jumped 48.67 points or 1.67 percent to end at 2,971.61.
The rally on Wall Street reflected optimism for an economic recovery as states reopen following the coronavirus-induced lockdowns. Early indications suggest the states that have reopened have not seen a spike in coronavirus cases, which has led to hopes the economy may rebound more quickly than expected.
Positive sentiment was also generated by earnings news from home improvement retailer Lowe's (LOW), which reported Q1 results that exceeded estimates on both the top and bottom lines.
Also, the minutes of the Federal Reserve's latest monetary policy meeting highlighted concerns about the uncertainty and risks to economic activity created by the coronavirus pandemic.
Crude oil prices climbed to a 10-week high on Wednesday after data showed a drop in crude stockpiles, and amid optimism about a pickup in energy demand. West Texas Intermediate Crude oil futures for July ended up $1.53, or 4.8 percent at $33.49 a barrel, the highest since March 10.
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