BEIJING (dpa-AFX) - The China stock market rebounded on Monday, one session after halting the three-day winning streak in which it had gathered almost 85 points or 2.4 percent. The Shanghai Composite Index now rests just above the 3,680-point plateau although it's expected to turn lower again on Tuesday.
The global forecast for the Asian markets is negative, likely led lower by weakness from the oil and technology stocks. The European and U.S. markets were down and the Asian bourses are tipped to follow that lead.
The SCI finished modestly higher on Monday following gains from the resource and energy stocks, weakness from the properties and a mixed picture from the financial sector.
For the day, the index gained 14.73 point or 0.40 percent to finish at 3,681.08 after trading between 3,678.06 and 3,708.94. The Shenzhen Composite Index rose 15.26 points or 0.60 percent to end at 2,561.91.
Among the actives, Industrial and Commercial Bank of China shed 0.64 percent, while Bank of China and China Life Insurance both fell 0.33 percent, China Merchants Bank tanked 2.00 percent, Bank of Communications dropped 0.87 percent, Jiangxi Copper rose 0.17 percent, Yanzhou Coal added 0.57 percent, PetroChina slid 0.20 percent, Huaneng Power surged 7.63 percent, China Shenhua Energy gained 0.46 percent, Gemdale tumbled 2.85 percent, Poly Developments plunged 3.14 percent, China Vanke retreated 1.29 percent, China Fortune Land plummeted 5.19 percent and China Construction Bank, Aluminum Corp of China (Chalco) and China Petroleum and Chemical (Sinopec) were unchanged.
The lead from Wall Street is soft as the major averages opened in the red on Monday and stayed under water throughout the trading day.
The Dow tumbled 320.04 points or 0.89 percent to finish at 35,650.95, while the NASDAQ sank 217.32 points or 1.39 percent to close at 15,413.28 and the S&P 500 lost 43.05 points or 0.91 percent to end at 4,668.97.
The pullback on Wall Street reflected profit taking, as traders cashed in on some of the strength in the markets last week. The major averages all moved sharply higher last week, with the S&P 500 ending last Friday's trading at a new record closing high.
Traders may also have been moving money out of stocks and into safer havens ahead of the Federal Reserve's money policy announcement on Wednesday.
The Fed is expected to discuss accelerating the pace of tapering its asset purchase program, with reports suggesting the central bank could double the rate to $30 billion per month.
Crude oil futures settled lower on Monday on concerns about the outlook for energy demand amid worries about the impact of the Omicron variant of the coronavirus. West Texas Intermediate Crude oil futures for January ended down by $0.38 or 0.5 percent at $71.29 a barrel.
Closer to home, China will provide November numbers for foreign direct investment later today; in October, FDI was up 17.8 percent on year
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