The China stock market has closed lower now in three straight sessions, plummeting more than 100 points or 4.2 percent along the way. The Shanghai Composite Index finished just above the 2,250-point plateau, and now investors may be tempted to scoop up bargains when the market opens on Friday.
The global forecast for the Asian markets is mixed, although any losses may be capped later by bargain hunting after fairly steep losses already this week. Financials may fall after Moody's Investors Service said it has downgraded the credit ratings of five Portuguese banks. But the markets may get a bounce from U.S. economic data as the Labor Department reported that weekly jobless claims beat estimates while falling to a four-year low. The European markets finished firmly in the red and the U.S. bourses were mixed but little changed - and the Asian markets figure to split the difference.
The SCI finished sharply lower on Thursday following losses from the oil companies and mining stocks.
For the day, the index plunged 32.72 points or 1.43 percent to finish at 2,252.16 after trading between 2,242.34 and 2,280.96. The Shenzhen Composite Index dropped 14.51 points or 1.6 percent to end at 895.07.
Among the decliners, SINOPEC Shanghai Petrochemical dropped 3.0 percent, while Sinopec retreated 1.7 percent, PetroChina slid 1.6 percent, Yunnan Chihong Zinc shed 5.2 percent, Zhuzhou Smelter Group lost 4.1 percent and Jiangxi Copper fell 3.4 percent.
Wall Street offers little guidance as stocks staged a recovery on Thursday afternoon after opening sharply lower. Profit taking contributed to the early weakness, with some traders cashing in on the recent strength in the markets amid calls by a number of analysts for a correction.
On the economic front, the U.S. Labor Department reported that weekly jobless claims missed estimates although still touched a four-year low. Jobless claims edged down to 359,000 in the week ended March 24 from the previous week's revised figure of 364,000. Economists had expected jobless claims to inch up to 350,000 from the 348,000 originally reported for the previous week.
A separate report from the Commerce Department showed that U.S. economic growth in the fourth quarter was unrevised, as a downward revision to exports was offset by an upward revision to non-residential fixed investment. GDP increased at an annual rate of 3.0 percent in the fourth quarter, unchanged from the previous estimate and in line with economist estimates.
Among individual stocks, Best Buy (BBY) fell by 7 percent after the consumer electronics retailer reported a fourth quarter loss. Mosaic (MOS) also ended the day in the red after the potash producer reported lower quarterly earnings and revenues.
On the other hand, shares of Red Hat (RHT) jumped 19.5 percent after the business software developer reported better than expected fourth quarter earnings and announced a $300 million stock buyback.
The major U.S. markets were mixed but little changed on Thursday as the Dow managed to close higher, but the NASDAQ and the S&P 500 closed in the red. The Dow crept up 19.61 points or 0.2 percent to finish at 13,145.82, while the NASDAQ slipped 9.60 points or 0.3 percent to 3,095.36 and the S&P 500 edged down 2.26 points or 0.2 percent to 1,403.28.
In corporate news, China TransInfo Technology on Thursday said its net income for the fourth quarter declined to $5 million or $0.20 per share from $5.8 million or $0.23 per share in the same quarter a year earlier. Quarterly revenues rose 24.3 percent to $48.2 million from $38.8 million a year earlier, driven primarily by a 14.1 percent increase in transportation revenue, mainly resulting from strong performance in the highway ITS.
Also, China Yida Holding on Thursday posted fourth-quarter net income attributable to the company of $12.1 million, lower than last year's $25.3 million. Earnings per share fell to $0.62 from $1.27 in the year-ago quarter. Total net revenue for the quarter declined 22.6 percent to $42.2 million from $54.5 million a year earlier.
by RTT Staff Writer
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