BEIJING (dpa-AFX) - Ahead of the week off for the Lunar New Year, the China stock market had finished lower in two straight sessions, sinking more than 90 points or 2.8 percent along the way. The Shanghai Composite Index now rests just above the 3,360-point plateau and it's expected to open sharply higher on Monday as its catches up on missed upbeat sentiment.
The global forecast for the Asian markets is mixed to higher, with support from technology stocks and crude oil companies expected to lead the way higher. The European markets were own and the U.S. markets were mixed and Asian markets figure to follow the latter lead.
The SCI finished sharply lower on Jan. 28 following losses from the financials and resource stocks, while the property sector was mixed.
For the day, the index dropped 32.81 points or 0.97 percent to finish at 3,361.44 after trading between 3,356.56 and 3,417.05. The Shenzhen Composite Index eased 0.04 points to end at 2,262.37
Among the actives, Industrial and Commercial Bank of China shed 0.43 percent, while China Construction Bank dropped 0.83 percent, China Merchants Bank tanked 3.07 percent, Bank of Communications surrendered 1.04 percent, China Life Insurance declined 1.61 percent, Ping An Insurance retreated 1.64 percent, Jiangxi Copper fell 0.30 percent, Aluminum Corp of China (Chalco) plunged 4.88 percent, Yankuang Energy plummeted 5.75 percent, PetroChina tumbled 4.20 percent, China Petroleum and Chemical (Sinopec) sank 0.95 percent, Huaneng Power slumped 4.52 percent, China Shenhua Energy stumbled 4.00 percent, Gemdale climbed 1.17 percent, Poly Developments added 0.32 percent, China Vanke lost 0.54 percent, China Fortune Land jumped 1.23 percent and Bank of China and China Minsheng Bank were unchanged.
The lead from Wall Street is mixed to higher as the major averages were directionless on Monday, finally finishing on opposite sides of the unchanged line.
The Dow dipped 21.42 points or 0.06 percent to finish at 35,089.74, while the NASDAQ surged 219.19 points or 1.58 percent to end at 14,098.01 and the S&P 500 gained 23.09 points or 0.52 percent to close at 4,500.53. For the week, the NASDAQ gained 2.5 percent, the S&P added 1.5 percent and the Dow was up 1.1 percent.
Traders reacted to much better than expected U.S. employment data from the Labor Department, which is good for economic recovery but spurred concerns for the outlook on interest rates.
Expectations for more aggressive tightening by the Federal Reserve lifted bond yields. The yield on long term U.S. 10-year Treasury note rose about the 1.9 percent mark for the first time in more than two years.
In earnings news, Amazon, Snap, Pinterest, Salesforce.com, JP Morgan Chase, Goldman Sachs, Microsoft, Walt Disney, Chevron and American Express all had solid numbers.
Crude oil prices rose sharply on Friday and lifted the most active crude futures contracts to their highest close in over seven years. Rising concerns over supply disruptions fueled the rally, as did mounting tensions between Russia and Ukraine. West Texas Intermediate Crude oil futures for March ended higher by $2.04 or 2.3 percent at $92.31 a barrel, the highest settlement since September 29, 2014. WTI crude oil futures gained more than 6 percent in the week.
Closer to home, China will provide January results for its services and composite indexes from Caixin later this morning; in December, their scores were 53.1 and 53.0, respectively.
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