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China Stock Market Has Positive Lead For Monday

The China stock market has moved higher in two of three trading days since the end of the three-day losing streak in which it had tumbled almost 85 points or 2.5 percent. The Shanghai Composite Index now rests just above the 3,425-point plateau although and it may add to its winnings on Monday.

The global forecast for the Asian markets suggests mild upside on continued optimism for economic recovery. The European and U.S. markets were up on Friday and the Asian bourses are tipped to open in similar fashion.

The SCI finished modestly higher on Friday following gains from the properties and oil companies, while the financials were also mostly higher.

For the day, the index gained 27.63 points or 0.81 percent to finish at 3,426.62 after trading between 3,394.13 and 3,432.63. The Shenzhen Composite Index improved 13.67 points or 0.62 percent to end at 2,220.22.

Among the actives, Industrial and Commercial Bank of China shed 0.37 percent, while Bank of China and China Merchants Bank both gained 0.61 percent, Bank of Communications collected 0.62 percent, China Life Insurance rallied 2.27 percent, Jiangxi Copper dropped 0.87 percent,
Aluminum Corp of China (Chalco) tanked 2.08 percent, Yanzhou Coal skyrocketed 9.43 percent, PetroChina advanced 0.94 percent, China Petroleum and Chemical (Sinopec) jumped 1,83 percent, China Shenhua Energy rose 0.25 percent, Gemdale surged 4.35 percent, Poly Developments climbed 1.12 percent, China Vanke gathered 0.84 percent, China Fortune Land soared 3.28 percent and China Construction Bank was unchanged.

The lead from Wall Street ends up being positive as the major averages shook off a mixed open on Friday to finish modestly in the green.

The Dow jumped 164.68 points or 0.48 percent to finish at 34,200.67, while the NASDAQ rose 13.58 points or 0.10 percent to end at 14,052.34 and the S&P 500 gained 15.05 points or 0.36 percent to close at 4,185.47. For the week, the S&P spiked 1.4 percent, the Dow rose 1.2 percent and the NASDAQ gained 1.1 percent.

Upbeat earnings news generated continued buying interest, as Morgan Stanley (MS) joined other financial giants in reporting better than expected first quarter earnings.

In economic news, the Commerce Department noted a substantial rebound in new residential construction in March, while the University of Michigan said sentiment has continued to improve in April.

Crude oil prices drifted lower on Friday, snapping a four-session winning streak but still finishing sharply higher for the week. West Texas Intermediate Crude oil futures for May were down $0.33 or 0.5 percent at $63.13 a barrel, although the contract gained nearly 6.5 percent in the week.

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