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Additional Support Predicted For China Stock Market

The China stock market jumped higher again on Monday, one session after halting the five-day winning streak in which it had soared more than 150 points or 4.8 percent. The Shanghai Composite Index now rests just above the 3,025-point plateau and it's looking at another firm lead for Tuesday.

The global forecast for the Asian markets is firm thanks to solid economic data, rising oil prices and expected bargain hunting. The European and U.S. markets were up and the Asian bourses are tipped to follow that lead.

The SCI finished sharply higher on Monday on bargain hunting following heavy losses in the previous session - particularly among the financials and oil and insurance companies.

For the day, the index spiked 57.13 points or 1.92 percent to finish at 3,026.99 after trading between 2,963.58 and 3,028.25. The Shenzhen Composite Index skyrocketed 62.54 points or 3.90 percent to end at 1,667.82.

Among the actives, Industrial and Commercial Bank of China added 0.36 percent, while Bank of China climbed 1.07 percent, China Construction Bank collected 0.87 percent, China Merchants Bank shed 0.81 percent, China Life Insurance spiked 2.27 percent, Ping An Insurance rose 0.13 percent, PetroChina perked 0.65 percent, China Petroleum and Chemical (Sinopec) gained 0.34 percent, China Shenhua Energy was up 0.45 percent, Gemdale advanced 0.51 percent, Poly Developments eased 0.08 percent and China Vanke gathered 0.18 percent.

The lead from Wall Street is broadly positive thanks to bargain hunting after a rough couple of sessions. The major averages opened in the green on Monday and stayed there throughout the session.

The Dow added 200.64 points or 0.79 percent to 25,650.88, while the NASDAQ spiked 149.92 points or 2.02 percent to 7,558.06 and the S&P 500 jumped 40.23 points or 1.47 percent to 2,783.30.

The rally on Wall Street came following a report from the Commerce Department showing an unexpected uptick in U.S. retail sales in January. The Commerce Department also noted business inventories increased as expected in December.

But the upside for the Dow was limited by a big drop in shares of Boeing, with the aerospace giant slumping 5.3 percent. Boeing came under pressure following the crash of Ethiopian Airlines Flight 302, which was the second crash in five months involving the company's 737 Max 8 model.

Crude oil prices moved higher on Monday, lifted by reports that Saudi Arabia will extend output cuts. West Texas Intermediate Crude futures for April ended up $0.72 or 1.3 percent at $56.79 a barrel.

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