BEIJING (dpa-AFX) - The China stock market has finished higher in back-to-back trading days, accumulating almost 20 points or 0.6 percent along the way. The Shanghai Composite Index now rests just above the 2,935-point plateau and it's may extend its gains on Tuesday.
The global forecast for the Asian markets suggests a higher open, even though many of the regional bourses are significantly overbought at this point as optimism for an economic recovery continues to buoy the bourses abroad.
The SCI finished slightly higher on Monday following gains from the properties and oil and insurance companies.
For the day, the index picked up 6.97 points or 0.24 percent to finish at 2,937.77 after trading between 2,934.21 and 2,950.07. The Shenzhen Composite Index added 0.28 points or 0.01 percent to end at 1,856.89.
Among the actives, Industrial and Commercial Bank of China collected 0.58 percent, while Bank of China added 0.29 percent, China Construction Bank shed 0.47 percent, China Merchants Bank climbed 1.22 percent, China Life Insurance soared 3.84 percent, Ping An Insurance jumped 1.89 percent, PetroChina advanced 0.93 percent, China Petroleum and Chemical (Sinopec) climbed 1.65 percent, Gemdale rose 0.07 percent, Poly Developments gained 0.34 percent, China Vanke increased 0.72 percent and Baoshan Iron was unchanged.
The lead from Wall Street is broadly positive as stocks moved sharply higher again on Monday, extending recent gains and sending the NASDAQ to a record closing high.
The Dow jumped 461.46 points or 1.70 percent to finish at 27,572.44, while the NASDAQ climbed 110.66 points or 1.13 percent to end at 9,924.75 and the S&P 500 added 38.46 points or 1.20 percent to close at 3,232.39.
The rally on Wall Street came as traders remain optimistic about a quick economic recovery as businesses begin to reopen following the coronavirus lockdown. Recent economic data has added to the optimism even as economists warn the recovery will be more gradual than expected.
Crude oil prices drifted lower Monday, weighed down by news about Saudi Arabia's decision to not extend any additional voluntary reduction in crude production. West Texas Intermediate crude oil futures for July ended down $1.36 or 3.4 percent at $38.19 a barrel.
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