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China Stock Market Poised To Extend Friday's Gains

The China stock market has moved higher in two of three trading days since the end of the two-day slide in which it had retreated more than 45 points or 0.6 percent. The Shanghai Composite Index now rests just beneath the 3,575-point plateau and it's expected to open in the green again on Monday.

The global forecast for the Asian markets is upbeat on solid earnings news and continued support from crude oil prices. The European and U.S. markets were up and the Asian bourses figure to follow that lead.

The SCI finished modestly higher on Friday following gains from the resource stocks and mixed performances from the financials and properties.

For the day, the index added 14.09 points or 0.40 percent to finish at 3,572.37 after trading between 3,542.69 and 3,578.77. The Shenzhen Composite Index rose 1.26 points or 0.05 percent to end at 2,400.52.

Among the actives, Industrial and Commercial Bank of China advanced 0.85 percent, while Bank of China shed 0.33 percent, China Merchants Bank jumped 1.81 percent, Bank of Communications and China Life Insurance both collected 0.22 percent, Jiangxi Copper gained 0.87 percent, Aluminum Corp of China (Chalco) climbed 1.69 percent, Yanzhou Coal skyrocketed 7.68 percent, PetroChina soared 4.39 percent, China Petroleum and Chemical (Sinopec) rallied 1.84 percent, Huaneng Power lost 0.60 percent, China Shenhua Energy spiked 3.63 percent, Gemdale added 0.72 percent, Poly Developments accelerated 2.22 percent, China Vanke dropped 0.99 percent, China Fortune Land plummeted 4.69 percent and China Construction Bank and China Minsheng Bank were unchanged.

The lead from Wall Street is broadly positive as the major averages opened solidly in the green on Friday and remained that way throughout the session.

The Dow surged 382.20 points or 1.09 percent to finish at 35,294.76, while the NASDAQ jumped 73.91 points or 0.50 percent to close at 14,897.34 and the S&P rose 33.11 points or 0.75 percent to end at 4,471.37. For the week, the Dow added 1.6 percent, the NASDAQ rose 2.2 percent and the S&P gained 1.8 percent.

Another batch of upbeat earnings news fueled the rally, led by financial giant Goldman Sachs (GS) and aluminum producer Alcoa (AA), among others.

Buying interest was also generated in reaction to a report from the Commerce Department showing an unexpected increase in U.S. retail sales in September. Also, the Labor Department said import prices in the U.S. increased less than expected last month.

Crude oil futures settled notably higher Friday after the International Energy Agency said oil demand is likely to increase significantly due to the energy crunch supporting prices. West Texas Intermediate Crude oil futures for November rose $0.97 or 1.2 percent at $82.28 a barrel. For the week, WTI Crude oil futures gained 3.7 percent, surging for the eighth straight week.

Closer to home, China is scheduled to release a raft of data this morning, including Q3 numbers for gross domestic product, as well as September figures for industrial production, retail sales, fixed asset investment, unemployment and foreign direct investment.

GDP is expected to gain 0.5 percent on quarter and 5.2 percent on year, slowing from 1.3 percent on quarter and 7.9 percent on year in the previous three months.

Industrial production is tipped to rise 4.5 percent on year, down from 5.3 percent in August. Retail sales are expected to climb an annual 3.3 percent, up from 2.5 percent a month earlier. FAI is called higher by 7.9 percent on year, down from 8.9 percent in the previous month. The jobless rate in August was 5.1 percent, while FDI was up 22.3 percent on year.

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