BEIJING (dpa-AFX) - The China stock market bounced higher on Monday, one session after it had snapped the four-day winning streak in which it had advanced almost 100 points or 3 percent. The Shanghai Composite Index now sits just above the 3,370-point plateau and it's tipped to open in the green again on Tuesday.
The global forecast for the Asian markets is broadly positive on hopes for a Covid-19 vaccine. The European markets were sharply higher and the U.S. bourses were mixed and the Asian markets figure to split the difference.
The SCI finished sharply higher on Monday following gains from the financial shares, properties and oil and insurance companies.
For the day, the index accelerated 61.57 points or 1.86 percent to finish at 3,373.73 after trading between 3,329.43 and 3,380.82. The Shenzhen Composite Index soared 51.36 points or 2.25 percent to end at 2,333.46.
Among the actives, Industrial and Commercial Bank of China collected 0.40 percent, while Bank of China added 0.31 percent, China Construction Bank rose 0.16 percent, China Merchants Bank climbed 1.29 percent, Bank of Communications gained 0.44 percent, China Life Insurance soared 3.17 percent, Ping An Insurance spiked 2.07 percent, PetroChina perked 1.21 percent, China Petroleum and Chemical (Sinopec) advanced 0.75 percent, China Shenhua Energy gathered 0.50 percent, Gemdale improved 1.20 percent, Poly Developments was up 0.19 percent, China Vanke increased 0.37 percent and China Fortune Land rallied 0.92 percent.
The lead from Wall Street is mixed as stocks skyrocketed to open Monday before giving ground as the day progressed and finished on opposite sides of the unchanged line.
The Dow surged 834.57 points or 2.95 percent to finish at 29,157.97, while the NASDAQ plummeted 181.45 points or 1.53 percent to end at 11,713.78 and the S&P 500 jumped 41.06 points or 1.17 percent to close at 3,550.50.
The early rally on Wall Street came following upbeat results from a phase 3 study of the coronavirus vaccine being developed by Pfizer (PFE) and BioNTech (BNTX).
The vaccine news added to positive sentiment generated in reaction to the weekend's news that Democratic candidate Joe Biden's is projected to win the presidential election.
However, President Donald Trump has refused to concede the race, alleging widespread voter fraud with no evidence and launching legal challenges in several key states.
The NASDAQ's slide came as traders moved money out of tech stocks that benefited from the coronavirus pandemic.
Crude oil prices rose sharply Monday as positive news about a potential coronavirus vaccine outweighed reports showing spikes in new infections. West Texas Intermediate Crude oil futures for December ended up $3.15 or 8.5 percent at $40.29 a barrel.
Closer to home, China will on Tuesday release October figures for consumer prices. Inflation is expected to add 0.2 percent on month and 0.8 percent on year after gaining 0.2 percent on month and 1.7 percent on year in September. Producer prices are expected to sink 2.0 percent on year after dropping 2.1 percent a month earlier.
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