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Bargain Hunting Expected To Lift China Shares

The China stock market has finished lower in back-to-back trading days, surrendering almost 40 points or 1.6 percent along the way. Now at a 33-month closing low, the Shanghai Composite Index now rests just beneath the 2,665-point plateau although it may find traction on Wednesday.

The global forecast for the Asian markets is upbeat that to a surge in crude oil prices, while bargain hunting also is expected. The European markets were mixed but little changed and the U.S. bourses were up - and the Asian markets figure to follow the latter lead.

The SCI finished slightly lower on Tuesday as losses from the financials and properties were tempered by support from the oil companies.

For the day, the index eased 4.68 points or 0.18 percent to finish at 2,664.80 after trading between 2,652.70 and 2,680.57. The Shenzhen Composite Index added 2.42 points or 0.17 percent to end at 1,409.34.

Among the actives, Gemdale retreated 1.82 percent, while Poly Real Estate dropped 1.27 percent, China Vanke fell 0.51 percent, China Construction Bank fell 0.60 percent, Bank of China shed 0.28 percent, China Merchants Bank skidded 1.79 percent, China Life Insurance lost 0.71 percent, China Petroleum and Chemical (Sinopec) advanced 0.89 percent, PetroChina added 0.73 percent, China Shenhua Energy tumbled 2.05 percent and Industrial and Commercial Bank of China was unchanged.

The lead from Wall Street is positive as stocks shrugged off a lower open on Tuesday, bouncing off early lows to end in positive territory.

The Dow rose 113.99 points or 0.44 percent to 25,971.06, while the NASDAQ climbed 48.31 points or 0.61 percent to 7,972.47 and the S&P added 10.76 points or 0.37 percent to 2,887.89.

The strength came largely as traders looked to pick up stocks at reduced levels following recent weakness.

Trading activity remained somewhat subdued, however, as a lack of major U.S. economic data kept some traders on the sidelines.

Crude oil futures ended higher on Tuesday, snapping a four-day losing streak, with falling output in Iran tightening global crude supply. Crude oil futures for October ended up $1.70 or 2.5 percent at $69.25 a barrel, the highest settlement price in a week.

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