Win Streak May Continue For China Stock Market

The China stock market has tracked higher in back-to-back sessions, collecting almost 35 points or 1.2 percent along the way. The Shanghai Composite Index now rests just above the 3,035-point plateau and it may extend its gains on Wednesday.

The global forecast for the Asian markets is mostly higher, with bargain hunting limited by concerns about economic growth and interest rates. The European markets were up and the U.S. bourses were mixed and the Asian markets figure to split the difference.

The SCI finished sharply higher on Tuesday following gains from the financial shares and resource stocks, while the properties were mixed.

For the day, the index climbed 31.70 points or 1.06 percent to finish at 3,035.84 after trading between 2,957.40 and 3,043.78. The Shenzhen Composite Index jumped 28.47 points or 1.53 percent to end at 1,894.39.

Among the actives, Industrial and Commercial Bank of China shed 0.63 percent, while Bank of China rose 0.31 percent, China Construction Bank collected 0.33 percent, China Merchants Bank strengthened 1.40 percent, Bank of Communications advanced 0.82 percent, China Life Insurance dipped 0.16 percent, Jiangxi Copper gained 0.60 percent, Aluminum Corp of China (Chalco) added 0.44 percent, Yankuang Energy stumbled 1.60 percent, PetroChina tanked 3.00 percent, Huaneng Power soared 4.43 percent, China Shenhua Energy plunged 3.14 percent, Gemdale sank 0.84 percent, Poly Developments climbed 1.11 percent, China Vanke increased 0.43 percent, China Fortune Land plummeted 4.76 percent, Beijing Capital Development dropped 0.96 percent and China Petroleum and Chemical (Sinopec) was unchanged.

The lead from Wall Street is murky as the major averages spent most of Tuesday bouncing back and forth across the unchanged line before finally settling on opposite sides.

The Dow shed 84.96 points or 0.26 percent to finish at 32,160.74, while the NASDAQ jumped 114.42 points or 0.98 percent to end at 11,737.67 and the S&P 500 added 9.81 points or 0.25 percent to close at 4,001.05.

The volatility came as traders continued to debate whether the markets have reached their bottom following the recent sell-off.

Bargain hunting contributed to early strength on Wall Street as some traders looked to pick up stocks at reduced levels. Buying interest waned over the course of the morning, however, as traders were wary about inflation, higher interest rates and the outlook for the global economy.

Stocks continued to fluctuate over the course of the session as traders looked ahead to the release of key inflation data in the coming days. The latest snapshot of inflation could impact expectations regarding how aggressively the Federal Reserve plans to raise interest rates.

Crude oil prices fell sharply on Tuesday, extending losses from the previous session amid concerns over a likely drop in energy demand. A stronger dollar weighed as well on oil prices. West Texas Intermediate Crude oil futures for June ended lower by $3.33 or 3.2 percent at $99.76 a barrel, a two-week low.

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