Additional Support Anticipated For China Stock Market

The China stock market has moved higher in consecutive trading days, gathering more than 20 points or 0.6 percent along the way. The Shanghai Composite Index now rests just beneath the 3,630-point plateau and it may add to its winnings on Thursday.

The global forecast for the Asian markets is upbeat, riding a surge in crude oil prices. The European and U.S. markets were solidly higher and the Asian bourses are expected to open in similar fashion.

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

For the day, the index improved 14.52 points or 0.40 percent to finish at 3,628.49 after trading between 3,560.50 and 3,629.45. The Shenzhen Composite Index slid 6.00 points or 0.25 percent to end at 2,440.05.

Among the actives, Industrial and Commercial Bank of China retreated 1.49 percent, while Bank of China shed 0.65 percent, China Construction Bank tumbled 1.98 percent, China Merchants Bank plunged 3.59 percent, Bank of Communications skidded 1.11 percent, China Life Insurance plummeted 3.73 percent, Jiangxi Copper dropped 0.91 percent, Aluminum Corp of China (Chalco) rallied 2.73 percent, Yanzhou Coal, China Shenhua Energy and Huaneng Power all skyrocketed by the 10 percent daily limit, PetroChina soared 7.19 percent, China Petroleum and Chemical (Sinopec) surged 4.68 percent, Gemdale spiked 9.66 percent, Poly Developments accelerated 5.71 percent, China Vanke jumped 5.30 percent and Capital Development added 0.58 percent.

The lead from Wall Street is solid as the major averages opened higher on Wednesday and remained in the green throughout the session.

The Dow spiked 3.38 points or 1.00 percent to finish at 34,258.32, while the NASDAQ jumped 150.45 points or 1.02 percent to end at 14,896.85 and the S&P 500 perked 41.45 points or 0.95 percent to close at 4.395.64.

The early rally on Wall Street came as traders picked up stocks at reduced levels following the slump seen during the month of September.

Stocks held on to strong gains even as the Federal Reserve hinted tapering of its asset purchases could begin in the near future amid continued progress towards it goals of maximum employment and price stability.

During his post-meeting press conference, Fed Chair Jerome Powell indicated the central bank could begin tapering its asset purchases as soon as its next meeting in early November.

Crude oil prices climbed on Wednesday after data showed a larger than expected drop in U.S. crude stockpiles last week. West Texas Intermediate crude oil futures for November ended up $1.74 or 2.5 percent at $72.23 a barrel.

For comments and feedback contact: editorial@rttnews.com

Follow RTT