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China Shares Tipped To See Continued Support

The China stock market has climbed higher in two straight sessions, gathering more than 45 points or 1.5 percent along the way. The Shanghai Composite Index now rests just above the 2,975-point plateau and it's likely to add to its winnings again on Tuesday.

The global forecast for the Asian markets is upbeat on growing optimism that a trade deal between the United States and China will soon be reached. The European and U.S. markets were up and the Asian bourses are tipped to follow suit.

The SCI finished modestly higher on Monday following gains from the oil and insurance companies, while the financials and properties were mixed.

For the day, the index advanced 17.29 points or 0.58 percent to finish at 2,975.49 after trading between 2,964.58 and 2,983.06. The Shenzhen Composite Index perked 9.70 points or 0.59 percent to end at 1,646.70.

Among the actives, Industrial and Commercial Bank of China shed 0.67 percent, while China Construction Bank collected 0.55 percent, China Merchants Bank jumped 1.58 percent, China Life Insurance surged 4.47 percent, Ping An Insurance added 0.28 percent, China Petroleum and Chemical (Sinopec) rose 0.20 percent, China Shenhua Energy sank 0.65 percent, Gemdale lost 0.66 percent, Poly Developments eased 0.20 percent, China Vanke was up 0.11 percent, CITIC Securities gathered 0.36 percent and Bank of China and PetroChina were unchanged.

The lead from Wall Street is positive as stocks opened higher Monday and stayed in the green, extending recent gains and hitting record closing highs.

The Dow added 114.75 points or 0.42 percent to 27,462.11, while the NASDAQ rose 46.80 points or 0.56 percent to 8,433.20 and the S&P 500 gained 11.36 points or 0.37 percent to 3,078.27.

The strength on Wall Street came as traders remain hopeful about a U.S.-China trade agreement, with Commerce Secretary Wilbur Ross expressing optimism phase one of a trade deal could be signed this month.

News on the merger-and-acquisition front also generated some positive sentiment, with shares of Wright Medical Group (WMGI) soaring after the medical device maker agreed to be acquired by larger rival Stryker (SYK) for $30.75 per share in cash.

Crude for December delivery moved higher on Monday, adding to recent gains on renewed optimism about the outlook for global demand. West Texas Intermediate climbed $0.45 or 0.80 percent to $56.68 per barrel.

Closer to home, China will see October results for the services and composite PMIs from Caixin later this morning; in September, their scores were 51.3 and 51.9, respectively.

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