BEIJING (dpa-AFX) - The China stock market turned emphatically lower again on Monday, one session after halting the five-day losing streak in which it had tumbled almost 150 points or 4.8 percent. The Shanghai Composite Index now rests just beneath the 2,930-point plateau although it's likely to rebound on Tuesday.
The global forecast for the Asian markets is cautiously optimistic, with bargain hunting likely after overdone selling a day earlier. The European markets were down and the U.S. bourses were up and the Asian markets figure to follow the latter lead.
The SCI finished with damage across the board on Monday as a spike in Covid cases triggered a fresh round of restrictions.
For the day, the index plunged 158.41 points or 5.13 percent to finish at the daily low of 2,928.51 after peaking at 3,043.82. The Shenzhen Composite Index plummeted 124.09 points or 6.48 percent to end at 1,790.03.
Among the actives, Industrial and Commercial Bank of China shed 1.86 percent, while Bank of China dipped 0.91 percent, China Construction Bank sank 2.24 percent, China Merchants Bank plunged 8.64 percent, Bank of Communications lost 2.51 percent, China Life Insurance tumbled 4.53 percent, Jiangxi Copper cratered 7.76 percent, Aluminum Corp of China (Chalco) plummeted 9.90 percent, Yankuang Energy tanked 5.13 percent, PetroChina retreated 4.36 percent, China Petroleum and Chemical (Sinopec) was down 3.23 percent, Huaneng Power fell 0.72 percent, China Shenhua Energy declined 3.33 percent, Gemdale skidded 3.20 percent, Poly Developments surrendered 4.44 percent, China Vanke slumped 4.95 percent and China Fortune Land dropped 7.40 percent.
The lead from Wall Street ends up positive as the major averages spent most on Monday in negative territory before a later rally pushed them solidly into the green.
The Dow jumped 238.06 points or 0.70 percent to finish at 34,049.46, while the NASDAQ spiked 165.56 points or 1.29 percent to end at 13,004.85 and the S&P 500 gained 24.34 points or 0.57 percent to close at 4,296.12.
The late rebound on Wall Street came as treasuries pulled back as the day progressed. The ten-year yield continued to give ground after ending last Thursday's trading at its highest closing level since December 2018.
The NASDAQ benefited from a surge by shares of Twitter (TWTR), which shot up by 5.7 percent after the social media giant accepted billionaire Elon Musk's buyout deal valued at about $44 billion.
The soft start was the result of lingering concerns about the outlook for interest rates ahead of the Federal Reserve's monetary policy meeting next week, as well as concerns about global economic growth amid a surge in Covid-19 cases in China.
Crude oil prices fell sharply on Monday as a spike in Covid cases in China raised concerns about energy demand. A strong U.S. dollar amid rising prospects of a series of sharp interest rate hikes by the Federal Reserve also weighed on crude oil prices. West Texas Intermediate Crude oil futures for June ended down by $3.53 or 3.5 percent at $98.54 a barrel.
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