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Win Streak Tipped To Continue For China Shares

The China stock market has climbed higher in four straight sessions, accelerating almost 90 points or 2.6 percent along the way. The Shanghai Composite Index now sits just above the 3,375-point plateau and it's set to extend its winning streak again on Thursday.

The global forecast for the Asian markets is upbeat and rising oil prices and optimism for stimulus. The European and U.S. markets were up and the Asian bourses figure to follow suit.

The SCI finished slightly higher on Wednesday as gains from the broader market were limited by weakness from the financials, properties and oil and insurance companies.

For the day, the index rose 5.88 points or 0.17 percent to finish at 3,377.56 after trading between 3,333.88 and 3,383.64. The Shenzhen Composite Index gained 18.42 points or 0.80 percent to end at 2,318.93.

Among the actives, Industrial and Commercial Bank of China dropped 0.99 percent, while Bank of China sank 0.89 percent, China Construction Bank shed 0.64 percent, China Merchants Bank skidded 1.04 percent, China Life Insurance and Ping An Insurance both tumbled 1.96 percent, PetroChina slid 0.64 percent, China Petroleum and Chemical (Sinopec) lost 0.50 percent, Baoshan Iron retreated 1.40 percent, Gemdale plunged 2.01 percent, Poly Developments plummeted 2.71 percent and China Vanke surrendered 1.41 percent.

The lead from Wall Street is positive as stocks moved mostly higher on Wednesday, extending gains from the previous session as the NASDAQ hit a fresh record closing high.

The Dow jumped 373.05 points or 1.39 percent to finish at 27,201.52, while the NASDAQ added 57.23 points or 0.52 percent to end at 10,998.40 and the S&P 500 rose 21.26 points or 0.64 percent to close at 3,327.77.

The continued strength in the broader markets reflected optimism that lawmakers will eventually reach an agreement on a new coronavirus relief bill after both sides noted progress in talks.

Adding to the positive sentiment, the Institute for Supply Management noted an unexpected acceleration in the pace of growth in service sector activity in July. But traders shrugged off a report from payroll processor ADP showing a slowdown in private sector job growth last month.

Crude oil prices moved higher Wednesday, lifted by data showing a sharp drop in U.S. crude inventories last week. West Texas Intermediate Crude oil futures for September ended up $0.49 or 1.2 percent at $42.19 a barrel.

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