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China Bourse May Extend Monday's Gains

The China stock market on Monday snapped the two-day losing streak in which it had retreated almost 30 points or 1 percent. The Shanghai Composite Index now rests just above the 2,875-point plateau and it may pick up steam on Tuesday.

The global forecast for the Asian markets is broadly positive on optimism for a possible vaccine to counter the Covid-19 virus. The European and U.S. markets were sharply higher and the Asian bourses are tipped to follow suit.

The SCI finished slightly higher on Monday following gains from the property stocks and oil companies, while the financial shares were mixed.

For the day, the index gained 6.96 points or 0.24 percent to finish at 2,875.42 after trading between 2,862.27 and 2,889.98. The Shenzhen Composite Index fell 7.72 points or 0.43 percent to end at 1,800.84.

Among the actives, Industrial and Commercial Bank of China collected 0.20 percent, while China Construction Bank rose 0.16 percent, China Minsheng Bank climbed 0.35 percent, China Merchants Bank eased 0.15 percent, China Life Insurance shed 0.30 percent, Ping An Insurance dipped 0.04 percent, PetroChina added 0.45 percent, China Petroleum and Chemical (Sinopec) increased 0.23 percent, China Shenhua Energy was up 0.06 percent, Gemdale soared 3.97 percent, Poly Developments jumped 1.31 percent, China Vanke accelerated 2.82 percent and Bank of China was unchanged.

The lead from Wall Street is upbeat as stocks opened sharply higher on Monday and gathered even more steam as the session progressed, cutting into last week's losses.

The Dow surged 911.95 points or 3.85 percent to finish at 24,597.37, while the NASDAQ jumped 220.27 points or 2.44 percent to 9.234.83 and the S&P 500 spiked 90.21 points or 3.15 percent to end at 2,953.91.

The rally on Wall Street came after Moderna (MRNA) reported "positive" phase one results for a potential coronavirus vaccine. Shares of the firm spiked 20 percent after the bio-tech company said an early-stage human trial for a vaccine produced antibodies in all 45 participants.

Energy stocks also saw substantial strength on the day as crude oil prices moved higher on Monday on easing worries about outlook for energy demand. West Texas Intermediate crude oil futures for June ended up $2.39 or 8.1 percent at $31.82 a barrel.

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