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Additional Support Tipped For China Stock Market

The China stock market on Wednesday wrote a finish to the two-day slide in which it had retreated almost 20 points or 0.6 percent. The Shanghai Composite Index now rests just above the 3,380-point plateau and it may extend its gains on Thursday.

The global forecast for the Asian markets is upbeat, thanks to solid earnings news and a bump in crude oil prices. The European and U.S. markets were up and the Asian bourses figure to follow suit.

The SCI finished modestly higher on Wednesday as gains from the financials and oil companies were capped by mixed performances from the property and resource sectors.

For the day, the index picked up 9.75 points or 0.29 percent to finish at 3,381.79 after trading between 3,371.92 and 3,383.23. The Shenzhen Composite Index fell 0.40 percent to end at 2,000.11.

Among the actives, Industrial and Commercial Bank of China spiked 2.11 percent, while Bank of China collected 0.72 percent, Agricultural Bank of China jumped 1.60 percent, Vanke added 0.84 percent, Gemdale eased 0.09 percent, PetroChina soared 2.48 percent, China Petroleum and Chemical (Sinopec) climbed 1.37 percent, China Life advanced 1.67 percent, Ping An Insurance gathered 1.79 percent, Jiangxi Copper plunged 2.45 percent and Zijin Mining gained 0.51 percent.

The lead from Wall Street continues to be positive as stocks finished higher again on Wednesday, with all three of the major averages hitting fresh record closing highs.

The Dow climbed 160.16 points or 0.70 percent to 23,157.60, while the NASDAQ inched up 0.56 points or 0.01 percent to 6,624.22 and the S&P was up 1.90 points or 0.07 percent to 2,561.26.

The spike in the Dow was largely the result of gains from IBM, which reported Q3 results that beat estimates on both the top and bottom lines.

In economic news, the Commerce Department saw a bigger than expected slump in housing starts and building permits in September. Also, the Federal Reserve's Beige Book said that economic activity increased in September through early October.

Crude oil prices inched higher Wednesday, bouncing back above $52 a barrel amid a drop in U.S. crude inventories. November WTI oil climbed 16 cents or 0.3 percent to $52.04/bbl.

by RTT Staff Writer

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