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Higher Open Predicted For China Stock Market

The China stock market has alternated between positive and negative finishes through the last five trading days since the end of the two-day losing streak in which it had faded not even two points. The Shanghai Composite Index now rests just above the 3,115-point plateau and it's expected to add to its winnings on Tuesday.

The global forecast for the Asian markets is upbeat on optimism ahead of the trade deal between the United States and China that is expected to be signed later this week. The European markets were mixed and the U.S. bourses were up and the Asian markets figure to split the difference.

The SCI finished modestly higher on Monday as gains from the financials and properties were capped by weakness from the oil companies.

For the day, the index advanced 23.28 points or 0.75 percent to finish at the daily high of 3,115.57 after moving as low as 3,075.38. The Shenzhen Composite Index jumped 24.47 points or 1.36 percent to end at 1,822.35.

Among the actives, Industrial and Commercial Bank of China collected 0.34 percent, while Bank of China added 0.27 percent, China Construction Bank rose 0.14 percent, China Merchants Bank was up 0.15 percent, China Life Insurance gained 0.63 percent, Ping An Insurance spiked 1.97 percent, PetroChina shed 0.33 percent, China Petroleum and Chemical (Sinopec) lost 0.39 percent, China Shenhua Energy gained 0.17 percent, Gemdale gathered 0.63 percent, Poly Developments surged 2.87 percent and China Vanke perked 0.70 percent.

The lead from Wall Street is positive as stocks moved mostly higher on Monday, rebounding from the pullback in the previous session. With the upward move, the NASDAQ and the S&P 500 ended the session at new record closing highs.

The Dow added 83.28 points or 0.29 percent to finish at 28,907.05, while the NASDAQ jumped 95.07 points or 1.04 percent to 9,273.93 and the S&P 500 rose 22.78 points or 070 percent to 3,288.13.

The strength on Wall Street came amid continued optimism about impact of the phase one China-U.S. trade deal. Chinese Vice Premier Liu He is scheduled to visit Washington to sign the deal, which is said to include reduced tariffs on Chinese goods in exchange for increased Chinese purchases of U.S. agricultural products.

Stocks saw further upside after various media reports said the Treasury Department will drop its designation of China as a "currency manipulator" ahead of the signing of the deal.

Crude oil prices declined sharply on Monday amid easing worries about U.S.-Iran tensions as the futures contract settled at its lowest level in six weeks. West Texas Intermediate Crude oil futures ended down $0.96 or 1.6 percent at $58.08 a barrel, the lowest price since early December.

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