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China Shares Expected To Bounce Higher Again

The China stock market has alternated between positive and negative finishes through the last four trading days since the end of the six-day slide in which it had retreated more than 180 points or 7 percent. The Shanghai Composite Index now rests just beneath the 2,800-point plateau although it's expected to rebound on Wednesday.

The global forecast for the Asian markets is broadly positive on an improved outlook for trade between the United States and China, and the resulting surge in crude oil prices. The European and U.S. markets were firmly higher and the Asian bourses are expected to open in similar fashion.

The SCI finished modestly lower on Tuesday following losses from the financial shares, property stocks and oil and insurance companies.

For the day, the index declined 17.73 points or 0.63 percent to finish at 2,797.26 after trading between 2,790.61 and 2,802.04. The Shenzhen Composite Index sank 10.36 points or 0.69 percent to end at 1,498.63.

Among the actives, China Construction Bank skidded 1.25 percent, while China Merchants Bank tumbled 1.58 percent, China Life Insurance plunged 2.98 percent, Ping An Insurance sank 1.72 percent, PetroChina lost 0.81 percent, China Petroleum and Chemical (Sinopec) retreated 1.00 percent, China Shenhua Energy fell 0.60 percent, Gemdale declined 1.24 percent, Poly Developments plummeted 1.72 percent, China Vanke was down 1.58 percent, CITIC Securities dropped 1.27 percent and Industrial and Commercial Bank of China and Bank of China were unchanged.

The lead from Wall Street is firmly upbeat as stocks moved higher early Tuesday and only got stronger as the day progressed.

The Dow climbed 372.54 points or 1.44 percent to 26,279.91, while the NASDAQ surged 152.95 points or 1.95 percent to 8,016.36 and the S&P 500 jumped 42.57 points or 1.48 percent to 2,926.32.

The rally on Wall Street came after U.S. Trade Representative Robert Lighthizer offered a temporary reprieve in the U.S.-China trade war by announcing a delay in imposing new tariffs on certain Chinese products. Lighthizer said the 10 percent tariff set to take effect on September 1 will be delayed until December 15 for certain products.

The announcement comes less than two weeks after President Donald Trump announced plans to impose a 10 percent tariff on the remaining $300 billion worth of Chinese imports, sparking a sell-off on Wall Street.

In U.S. economic news, the Labor Department said consumer prices rose in line with estimates in July, although the report also showed another bigger than expected increase in core consumer prices.

Crude oil prices shook off early weakness and posted a modest recovery on Tuesday following news of the delay in tariffs. West Texas Intermediate climbed $2.42 or 4.42 percent to $57.20 after the trade announcement after moving as low as $54.78 earlier in the day.

Closer to home, China is scheduled to release a batch of data later this morning, including July figures for industrial production, retail sales, fixed asset investment, unemployment and property investment.

Industrial production is predicted to rise 6.0 percent on year, slowing from 6.3 percent in June. Retail sales are expected to advance an annual 8.6 percent, down from 9.8 percent in the previous month.

Fixed asset investment is pegged at 5.9 percent, up from 5.8 percent a month earlier. The jobless rate was 5.1 percent in June, while property investment climbed 10.9 percent on year.

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