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China Shares Likely To See Additional Support

The China stock market has climbed higher in consecutive trading days, advancing more than 30 points or 1 percent along the way. The Shanghai Composite Index now rests just above the 2,845-point plateau and it's looking at a green light again for Wednesday's trade.

The global forecast for the Asian markets is broadly positive on optimism for economic recovery as economies continue to reopen. The European and U.S. markets were up and the Asian bourses are tipped to open in similar fashion.

The SCI finished sharply higher on Tuesday following gains from the financial shares, property stocks and insurance companies - while the energy producers were mixed.

For the day, the index climbed 28.58 points or 1.01 percent to finish at 2,846.55 after trading between 2,825.90 and 2,848.34. The Shenzhen Composite Index plummeted 38.70 points or 2.21 percent to end at 1,789.52.

Among the actives, Industrial and Commercial Bank of China shed 0.20 percent, while Bank of China lost 0.29 percent, China Construction Bank collected 0.16 percent, China Merchants Bank climbed 1.03 percent, China Life Insurance advanced 0.95 percent, Ping An Insurance added 0.69 percent, PetroChina rose 0.23 percent, China Petroleum and Chemical (Sinopec) fell 0.24 percent, Gemdale gained 0.48 percent, Poly Developments increased 0.39 percent, China Vanke jumped 1.45 percent and China Shenhua Energy and China Minsheng Bank were unchanged.

The lead from Wall Street is upbeat as stocks opened firmly higher on Tuesday and remained well in the green throughout the session.

The Dow surged 529.95 points or 2.17 percent to finish at 24,995.11, while the NASDAQ added 15.63 points or 0.17 percent to 9,340.22 and the S&P 500 rose 36.32 points or 1.23 percent to end at 2,991.77.

The rally on Wall Street was fueled by optimism for a possible vaccine for the Covid-19 virus as U.S. biotech company Novavax said Monday it started the first human study of its experimental coronavirus vaccine and that it expects initial results on safety and immune responses in July.

There was also a positive reaction to news that several states are continuing to relax lockdown restrictions and reopening more businesses.

Crude oil prices moved higher on Tuesday amid rising optimism for improved energy demand. West Texas Intermediate Crude oil futures for July ended up $1.10 or 3.3 percent at $34.35 a barrel.

Closer to home, China will release April figures for industrial profits later today; in March, profits plummeted 36.7 percent on year.

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