BEIJING (dpa-AFX) - The China stock market on Monday snapped the two-day winning streak in which it had jumped almost 100 points or 3 percent. The Shanghai Composite index now sits just beneath the 3,420-point plateau and it may see additional support on Tuesday.
The global forecast for the Asian markets suggests mild upside on easing bond yields ahead of Wednesday's Federal Reserve meeting. The European markets were down and the U.S. bourses were up and the Asian markets are called mixed with an upside bias.
The SCI finished modestly lower on Monday following losses from the properties and mixed pictures from the resource and finance stocks.
For the day, the index dropped 33.13 points or 0.96 percent to finish at 3,419.95 after trading between 3,392.51 and 3,457.49. The Shenzhen Composite Index tumbled 47.32 points or 2.13 percent to end at 2,172.94.
Among the actives, Industrial and Commercial Bank of China rallied 2.02 percent, Bank of China collected 0.61 percent, China Construction Bank jumped 1.64 percent, China Merchants Bank shed 0.39 percent, Bank of Communications climbed 1.07 percent, China Life Insurance sank 0.75 percent, Jiangxi Copper dropped 0.81 percent, Aluminum Corp of China (Chalco) accelerated 2.03 percent, Yanzhou Coal gained 0.75 percent, Baoshan Iron added 0.66 percent, PetroChina perked 1.35 percent, China Petroleum and Chemical (Sinopec) spiked 2.90 percent, Huaneng Power skidded 1.33 percent, Gemdale lost 0.88 percent, Poly Developments retreated 1.32 percent, China Vanke eased 0.16 percent and China Fortune Land plunged 2.28 percent.
The lead from Wall Street ended up being positive as stocks languished near the unchanged line throughout Monday morning before breaking well into the green in the afternoon.
The Dow jumped 174.82 points or 0.53 percent to finish at 32,953.46, while the NASDAQ spiked 139.84 points or 1.05 percent to end at 13,459.71 and the S&P 500 gained 25.60 points or 0.65 percent to close at 3,968.94.
The strength that emerged on Wall Street reflected optimism about the economic outlook amid stepped up coronavirus vaccination efforts and the recent passage of a new $1.9 trillion stimulus bill.
A pullback by treasury yields may also have generated some buying interest, with the ten-year yield moving lower after ending last Friday's trading at its highest closing level in over a year.
Trading activity was subdued, however, as traders looked ahead to the Federal Reserve's monetary policy announcement on Wednesday. Traders are hoping the Fed will address the recent spike in bond yields, which has led to considerable volatility in Wall Street in recent sessions.
Crude oil futures ended lower on Monday with traders weighing energy demand prospects in the wake of a spike in coronavirus cases in Europe. West Texas Intermediate Crude oil futures for April slid $0.22 or 0.3 percent at $65.39 a barrel.
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