BEIJING (dpa-AFX) - The China stock market on Monday wrote a finish to the three-day losing streak in which it had dropped more than 45 points or 1.3 percent. The Shanghai Composite Index now rests just beneath the 3,525-point plateau and it's expected to bounce higher again on Tuesday.
The global forecast for the Asian markets is mixed to higher, with bargain hunting expected after recent heavy losses. The European markets were sharply lower and the U.S. bourses moved higher and the Asian markets figure to follow the latter lead.
The SCI finished barely higher on Monday following gains from the energy companies and property stocks, while the financials and oil companies were mixed.
For the day, the index rose 1.54 points or 0.04 percent to finish at 3,524.11 after trading between 3,500.14 and 3,531.61. The Shenzhen Composite Index gained 4.60 points or 0.19 percent to end at 2,392.24.
Among the actives, China Construction Bank collected 0.16 percent, while China Merchants Bank rose 0.06 percent, Bank of Communications shed 0.62 percent, China Life Insurance skidded 1.18 percent, Jiangxi Copper plunged 3.08 percent, Aluminum Corp of China (Chalco) tanked 2.40 percent, Yankuang Energy advanced 0.72 percent, PetroChina rallied 2.51 percent, China Petroleum and Chemical (Sinopec) dipped 0.23 percent, Huaneng Power soared 3.78 percent, China Shenhua Energy added 0.46 percent, Gemdale climbed 1.45 percent, Poly Developments spiked 3.29 percent, China Vanke perked 0.28 percent, China Fortune Land skidded 1.15 percent, Beijing Capital Development was up 0.16 percent and Industrial and Commercial Bank of China and Bank of China were unchanged.
The lead from Wall Street ends up being positive as a late rally erased the deep losses that otherwise permeated the session.
The Dow climbed 99.13 points or 0.29 percent to finish at 34,364.50, while the NASDAQ gained 86.21 points or 0.63 percent to close at 13,855.13 and the S&P 500 rose 12.19 points or 0.28 percent to end at 4,410.13.
The stunning turnaround came as traders went bargain hunting following recent weakness on Wall Street, with some analysts describing the sell-off as overdone.
Concerns about tightening monetary policy continued to weigh on the markets early in the session ahead of this week's Federal Reserve meeting.
The Fed is scheduled to begin a two-day meeting later today, with the latest monetary policy decision due Wednesday afternoon. While the Fed is likely to leave interest rates unchanged, the accompanying statement could hint at the first rate hike as early as the next meeting in March.
Crude oil prices plunged sharply Monday amid rising fears the Federal Reserve might resort to aggressive monetary tightening. A firm dollar also weighed on oil prices on rising tensions between Russia and the West over Ukraine. West Texas Intermediate Crude oil futures for March dropped $1.83 or 2.2 percent at $83.31 a barrel.
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