BEIJING (dpa-AFX) - The China stock market has finished lower in consecutive trading days, surrendering more than 200 points or 6.6 percent along the way. The Shanghai Composite Index now rests just beneath the 2,890-point plateau and it's looking at another rough start on Wednesday.
The global forecast for the Asian markets is broadly negative on inflation and treasury yield concerns. The European and U.S. markets were sharply lower and the Asian bourses are tipped to follow that lead.
The SCI finished sharply lower on Tuesday following losses from the oil, insurance and resource stocks, while the financials were mixed and the properties were up.
For the day, the index slumped 42.09 points or 1.44 percent to finish at 2,886.43 after trading between 2,878.26 and 2,957.68. The Shenzhen Composite Index plummeted 37.75 points or 2.11 percent to end at 1,752.28.
Among the actives, Industrial and Commercial Bank of China climbed 1.26 percent, while Bank of China collected 0.31 percent, China Construction Bank shed 0.66 percent, China Merchants Bank skidded 1.08 percent, Bank of Communications dipped 0.20 percent, China Life Insurance tanked 2.25 percent, Jiangxi Copper plunged 5.35 percent, Aluminum Corp of China (Chalco) plummeted 6.34 percent, Yankuang Energy cratered 5.11 percent, PetroChina retreated 1.19 percent, China Petroleum and Chemical (Sinopec) dropped 0.95 percent, Huaneng Power surrendered 2.31 percent, China Shenhua Energy sank 0.80 percent, Gemdale rallied 2.85 percent, Poly Developments surged 3.41 percent, China Vanke improved 0.69 percent, China Fortune Land gained 0.35 percent and Beijing Capital Development tumbled 1.81 percent.
The lead from Wall Street is brutal as the major averages opened lower on Tuesday and the losses only accelerated as the day progressed.
The Dow plummeted 809.28 points or 2.38 percent to finish at 33,240.18, while the NASAQ tumbled 514.11 points or 3.95 percent to close at 12,490.74 and the S&P 500 dropped 120.92 points or 2.81 percent to end at 4,175.20.
The sell-off on Wall Street came as elevated inflation, rising treasury yields and the ongoing war in Ukraine continued to weigh on investors as they digest the latest earnings news.
In economic news, the Commerce Department said new orders for U.S. manufactured durable goods rebounded in March. The Commerce Department also noted a steep drop in U.S. new home sales in March. And the Conference Board reported a mild decrease in U.S. consumer confidence in April.
Crude oil prices moved higher Tuesday as concerns about outlook for energy demand eased after the Chinese central bank said that it would support small businesses and industries affected by the pandemic. West Texas Intermediate Crude oil futures for June ended higher by $3.16 or 3.2 percent at $101.70 a barrel.
Closer to home, China will see March numbers for industrial profits later today; in February, profits were up 5.0 percent on year.
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