China Bourse May Add To Its Winnings On Tuesday

(RTTNews) - The China stock market has moved higher in back-to-back sessions, advancing almost 110 points or 2.7 percent in that span. The Shanghai Composite Index now sit just beneath the 4,100-point plateau and it has a solid lead again for Tuesday's trade.

The global forecast for the Asian markets is upbeat, even though they've already had the chance to respond the easing of tensions in the Middle East. The European markets were mixed and the U.S. bourses were up and the Asian markets are tipped to at least open to the upside.

The SCI finished sharply higher on Monday following gains from the insurance and resource companies, while the properties and oil stocks were mixed and the financials were soft.

For the day, the index jumped 64.96 points or 1.61 percent to finish at 4,096.47 after trading between 4,051.07 and 4,097.17. The Shenzhen Composite Index spiked 92.18 points or 3.42 percent to end at 2,789.36.

Among the actives, Industrial and Commercial Bank of China tumbled 2.70 percent, while Bank of China tanked 2.54 percent, Agricultural Bank of China retreated 1.76 percent, China Merchants Bank dropped 0.99 percent, Bank of Communications contracted 1.82 percent, China Life Insurance rallied 2.01 percent, Jiangxi Copper skyrocketed 10.01 percent, Aluminum Corp of China (Chalco) skidded 1.20 percent, Yankuang Energy plummeted 8.15 percent, PetroChina stumbled 2.41 percent, China Petroleum and Chemical (Sinopec) climbed 1.01 percent, Huaneng Power perked 0.12 percent, China Shenhua Energy cratered 5.96 percent, Gemdale added 0.40 percent, Poly Developments fell 0.38 percent and China Vanke sank 0.95 percent.

The lead from Wall Street is broadly positive as the major averages opened sharply higher on Monday and remained that way throughout the trading day.

The Dow jumped 468.77 points or 0.92 percent to finish at 51,671.03, while the NASDAQ surged 795.10 points or 3.07 percent to end at 26,683.94 and the S&P 500 rallied 122.83 points or 1.65 percent to close at 7,554.29.

The rally on Wall Street followed news that the U.S. and Iran have reached an agreement to end more than three months of war.

The agreement reportedly extends the U.S.-Iran ceasefire for 60 days, with the countries set to use that window to negotiate over Iran's nuclear enrichment and the disposal of its highly enriched uranium.

Crude oil prices plummeted Monday after the U.S. and Iran reached an agreement to end their conflict and allow the immediate resumption of trade via the Strait of Hormuz. West Texas Intermediate crude for July delivery was down $4.31 or 5.08 percent at $80.57 per barrel.

In U.S. economic news, a report released by the Federal Reserve showed a modest increase in industrial production in the U.S. in May.

Closer to home, China will release May numbers for industrial production, retail sales, fixed asset investment, house prices and unemployment later this morning. Industrial production is expected to rise 4.3 percent on year, up from 4.1 percent in April. Sales are seen lower by an annual 0.2 percent after rising 0.2 percent in the previous month.

Investment is expected to drop 2.3 percent on year after slumping 1.6 percent a month earlier. House prices fell 3.5 percent on year in April, while the jobless rate is expected to hold steady at 5.2 percent.