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Rally May Stall For China Stock Market

The win streak has stretched to three sessions now for the China stock market, which has climbed nearly 200 points or 4.8 percent to another fresh seven-year closing high. The Shanghai Composite Index settled just below the 4,415-point plateau, although now the market is overdue for profit taking on Friday.

The global forecast for the Asian markets suggests mild upside, again thanks to generally upbeat earnings news. The European markets were mixed and the U.S. bourses were barely higher - and the Asian markets figure to split the difference.

The SCI finished modestly higher on Thursday as gains from the telecoms were pared by weakness among the financial shares.

For the day, the index gained 16.01 points or 0.36 percent to finish at 4,414.51 after trading between 4,358.84 and 4,444.41 on turnover of 963.0 billion yuan. The Shenzhen Composite Index jumped 22.52 points or 1.01 percent to 2,256.98 on turnover of 687.7 billion yuan.

Among the actives, China Unicom surged by the 10 percent daily limit, while Datang Telecom Technology climbed 4.05 percent, China Construction Bank shed 1.43 percent, Citic Securities tumbled 2.59 percent and China Pacific Insurance fell 1.90 percent.

The lead from Wall Street is cautiously optimistic as stocks shrugged off early volatility to move mostly higher on Thursday. With the upward move, the tech-heavy NASDAQ hit a new record closing high.

While the NASDAQ rose 20.89 points or 0.4 percent to 5,056.06, the Dow inched up 20.42 points or 0.1 percent to 18,058.69 and the S&P 500 added 4.97 points or 0.2 percent to 2,112.93.

The strength on Wall Street reflected a positive reaction to the latest batch of earnings news from big-name companies, including AT&T (T) and eBay (EBAY) - although the numbers from General Motors (GM) and 3M (MMM) disappointed.

Traders also expressed optimism that the Federal Reserve will delay its planned increase in interest rates following disappointing housing data from the Commerce Department.

A separate report from the Labor Department showed an unexpected uptick in initial jobless claims in the week ended April 18, although claims remained below 300,000.

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