BEIJING (dpa-AFX) - The China stock market on Monday ended the two-day losing streak in which it had dropped more than 55 points or 1.7 percent. The Shanghai Composite Index now sits just shy of the 3,580-point plateau and it's expected to see additional support on Tuesday.
The global forecast for the Asian markets is positive on bargain hunting and optimism for an interest rate cut. The European and U.S. markets were sharply higher and the Asian bourses figure to follow that lead.
The SCI finished modestly higher on Monday as gains from the financial shares, properties and resource stocks were capped by weakness from the oil companies.
For the day, the index collected 23.36 points or 0.66 percent to finish at the daily high of 3,583.31 after trading as low as 3,547.16. The Shenzhen Composite Index added 17.07 points or 0.78 percent to end at 21,92.56.
Among the actives, Industrial and Commercial Bank of China increased 0.79 percent, while Bank of China collected 0.54 percent, Agricultural Bank of China advanced 0.95 percent, China Merchants Bank expanded 1.08 percent, Bank of Communications and Jiangxi Copper both improved 0.66 percent, Aluminum Corp of China (Chalco) gained 0.68 percent, Yankuang Energy climbed 1.10 percent, PetroChina shed 0.47 percent, China Petroleum and Chemical (Sinopec) sank 0.70 percent, Huaneng Power strengthened 1.23 percent, Poly Developments added 0.50 percent, China Vanke rose 0.31 percent and Gemdale, China Shenhua Energy and China Life Insurance were unchanged.
The lead from Wall Street is strong as the major averages opened solidly higher on Monday and closed in similar fashion, cutting into Friday's steep losses.
The Dow jumped 585.06 points or 1.34 percent to finish at 44,173.64, while the NASDAQ rallied 403.45 points or 1.95 percent to end at 21,053.58 and the S&P 500 gained 91.93 points or 1.47 percent to close at 6,329.94.
The rally on Wall Street came as traders looked to pick up stocks at reduced levels following the recent sell-off, which saw the NASDAQ and the S&P 500 pull back well off their record highs.
The steep drop last Friday came amid concerns about the economic impact of President Donald Trump's new tariffs, weaker than expected jobs data and a slump by shares of Amazon (AMZN).
Optimism the weak jobs data will lead the Federal Reserve to lower interest rates next month also contributed to the buying interest. According to CME Group's FedWatch Tool, the chances of a quarter point rate cut in September have jumped to 91.9 percent from 63.1 percent a week ago.
Crude oil continued to decline on Monday thanks to oversupply concerns and fears of a tariff-induced slowdown by the global economy. West Texas Intermediate crude for September delivery was down $1.06 or 1.57 percent at $66.27 per barrel.
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