BEIJING (dpa-AFX) - The China stock market has finished lower in consecutive trading days, sinking almost 90 points or 2.9 percent along the way. The Shanghai Composite Index now sits just beneath the 3,365-point plateau although it may find traction on Friday.
The global forecast for the Asian markets is cautiously optimistic, with a bounce from technology stocks expected to lead the way higher. The European markets were down and the U.S. bourses were up and the Asian markets figure to follow the latter lead.
The SCI finished sharply lower on Thursday following losses from the financial shares and oil and insurance companies.
For the day, the index dropped 44.23 points or 1.30 percent to finish at 3,363.90 after trading between 3,352.78 and 3,394.56. The Shenzhen Composite Index sank 27.95 points or 1.24 percent to end at 2,225.73.
Among the actives, Industrial and Commercial Bank of China shed 0.60 percent, while Bank of China fell 0.30 percent, Bank of Communications lost 0.42 percent, China Construction Bank skidded 1.12 percent, China Merchants Bank tanked 2.16 percent, China Life Insurance plunged 3.89 percent, Ping An Insurance surrendered 0.73 percent, PetroChina retreated 1.33 percent, China Petroleum and Chemical (Sinopec) sank 0.74 percent, China Shenhua Energy dropped 0.88 percent, Gemdale declined 1.25 percent, Poly Developments dipped 0.42 percent and China Vanke rose 0.15 percent.
The lead from Wall Street is positive as stocks moved mostly higher on Thursday, shaking off an early soft open to finish in the green.
The Dow added 46.85 points or 0.17 percent to finish at 27,739.73, while the NASDAQ jumped 118.49 points or 1.06 percent to 11,264.95 and the S&P 500 rose 10.66 points or 0.32 percent to close at 3,385.51.
The strength that emerged on Wall Street was largely among technology stocks, including semiconductor giant Intel (INTC), Microsoft (MSFT), Alphabet (GOOGL), Apple (AAPL), and Netflix (NFLX).
Stocks initially moved lower following a Labor Department report showing an unexpected increase in first-time claims for U.S. unemployment benefits last week.
Selling pressure waned shortly after the start of trading, however, as the negative sentiment was partly offset by news that China and the U.S. have agreed to hold new trade talks in the coming days.
Crude oil prices sputtered on Thursday on concerns over demand recovery due to the resurgence of the coronavirus. West Texas Intermediate (WTI) U.S. crude futures rose 2 cents or 0.04 percent to $42.76 a barrel.
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