The China stock market headed right back to the upside again on Monday, one session after it had ended the modest two-day winning streak in which it had gathered more than 100 points or 2.8 percent in the process. The Shanghai Composite Index now rests just shy of the 3,190-point plateau, and now analysts are looking for the market to open slightly firmer again on Tuesday.
The global forecast for the Asian markets is again virtually flat with a touch of upside in what is expected to be very thin trade in between the Christmas and New Year's holidays. Oil and gold stocks may provide a bit of support, although properties and airlines are expected to be weak. The European and U.S. markets finished slightly higher, and now the Asian markets are expected to follow suit.
The SCI finished sharply higher on Monday after Premier Wen Jiabao said that Beijing would continue economic stimulus measures. Steel producers led the rally, while financials also provided solid support.
For the day, the index added 47.43 points or 1.51 percent to finish at 3,188.79 after trading between 3,148.86 and 3,202.09 on turnover of 110.6 billion yuan.
Among the gainers, Baoshan Iron and Steel added 3.0 percent, while Maanshan Iron and Steel gained 3.9 percent, Citic Securities jumped 3.6 percent, Haitong Securities was up 2.2 percent and Guoyuan Securities climbed 3.3 percent.
The lead from Wall Street is cautiously optimistic as stocks were able to eke out modest gains to kick off the last trading week of the year, with a lack of economic catalysts limiting movement in Monday's dealing. The major averages were able to move higher for a sixth straight session, setting fresh yearly closing highs.
Airline stocks came under considerable pressure today, however, as the weekend's attempted terrorist attack by a supposed al-Qaeda operative on a transatlantic flight bound for Detroit from Amsterdam sparked global security concerns. Even though the attack was thwarted and resulted in no casualties or impact to airline operations, airlines worldwide have stepped up security measures in the wake of the attack.
In other news, holiday shopping showed a modest increase this year, according to the MasterCard Advisors' SpendingPulse report, which tracks national retail and service sales. The report showed year-over-year growth in the period between Black Friday and December 24th in all sectors measured. Retail stocks saw modest strength following the report.
Also, the Treasury Department sold $44.0 billion in two-year notes, seeing weaker than usual demand, with the bid-to-cover ratio for the auction coming at 2.91. The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold.
The major averages moved to the upside going into the close, ending the day modestly higher. The Dow gained 26.98 points or 0.3 percent to close at 10,547.08, the NASDAQ advanced by 5.39 points or 0.2 percent to 2,291.78 and the S&P 500 rose by 1.30 points or 0.1 percent to 1,127.78.
In economic news, Chinese industrial profits increased 7.8 percent to CNY 2.58 trillion during January to November, the National Bureau of Statistics said in a report on Monday. Industrial profits fell 10.6 percent in the January to August period. Profit of state owned enterprises was down 4.5 percent, while privately run enterprises recorded an annual growth of 17.4 percent for the first 11 months.
Also, the Association of Southeast Asian Nations along with Japan, China and South Korea signed an agreement to set up a US$120 billion fund to address short-term liquidity problems in the region. The fund is known as the Chiang Mai Initiative. The core objectives of CMIM are to address balance of payments difficulties in the region and to supplement the existing international financial arrangements. The fund will take effect from March 24, 2010.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.