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China Stock Market May Extend Recovery From Last Week's Selloff

The China stock market has climbed higher in seven straight sessions, advancing more than 180 points or 6.3 percent along the way. The Shanghai Composite Index now rests just above the 2,925-point plateau and it's predicted to open higher again on Thursday.

The global forecast for the Asian markets is upbeat on easing coronavirus fears and rising crude oil prices. The European and U.S. markets were up and the Asian bourses are tipped to follow suit.

The SCI finished modestly higher on Wednesday as gains from the financial shares and resource stocks were tempered by weakness from the property sector.

For the day, the index gained 25.23 points or 0.87 percent to finish at the daily high of 2,926.90 after moving as low as 2,892.42. The Shenzhen Composite Index jumped 27.31 points or 1.55 percent to end at 1,785.33.

Among the actives, Bank of China collected 0.28 percent, while China Merchants Bank rose 0.08 percent, China Life Insurance spiked 2.03 percent, Ping An Insurance was up 0.09 percent, PetroChina gained 0.19 percent, China Petroleum and Chemical (Sinopec) added 0.21 percent, Aluminum Corp of China (Chalco) climbed 0.97 percent, Yanzhou Coal perked 0.32 percent, Anhui Conch Cement gathered 0.41 percent, Jiangxi Copper advanced 0.63 percent, Baoshan Iron dipped 0.19 percent, Gemdale fell 0.31 percent, Poly Developments sank 0.40 percent and China Shenhua Energy, China Vanke, China Minsheng Bank, Industrial and Commercial Bank of China and China Construction Bank all were unchanged.

The lead from Wall Street is positive as stocks made a strong move to the upside on Wednesday, adding to the modest gains in the previous session and sending the major averages to new record closing highs.

The Dow added 275.08 points or 0.94 percent to end at 29,551.42, while the NASDAQ rose 87.02 points or 0.90 percent to 9,725.96 and the S&P 500 gained 21.70 points or 0.65 percent to 3,379.45.

The rally on Wall Street came as traders pushed stocks to new record highs despite concerns about the economic impact of the coronavirus outbreak; a recent slowdown in the rate of growth in new infections has led to optimism the outbreak is being contained.

Traders also kept an eye on Federal Reserve Chairman Jerome Powell's testimony before the Senate Banking Committee. Powell said the Fed is closely monitoring the coronavirus outbreak but also highlighted the resilience of the U.S. economy.

Despite a jump in U.S. crude stockpiles last week, crude oil prices moved up sharply on Wednesday amid expectations that OPEC will significantly cut crude production. West Texas Intermediate Crude oil futures for March ended up $1.23 or 2.5 percent at $51.17 a barrel.

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