China Shares Tipped To Open In The Green On Wednesday

(RTTNews) - The China stock market has climbed higher in two straight sessions, collecting almost 20 points or 0.6 percent along the way. The Shanghai Composite Index now rests just above the 3,055-point plateau and it's expected to see additional support on Wednesday.

The global forecast for the Asian markets is upbeat on better than expected U.S. inflation data, which fueled optimism over interest rates. The European and U.S. markets were firmly higher and the Asian bourses figure to follow suit.

The SCI finished modestly higher on Tuesday following gains from the financial shares and property stocks, while the resource companies were soft.

For the day, the index rose 9.54 points or 0.31 percent to finish at 3,056.07 after trading between 3,044.43 and 3,059.53. The Shenzhen Composite Index gained 7.32 points or 0.38 percent to end at 1,921.72.

Among the actives, Industrial and Commercial Bank of China collected 0.63 percent, while Bank of China added 0.51 percent, China Merchants Bank strengthened 1.27 percent, Bank of Communications perked 0.17 percent, China Life Insurance dropped 0.99 percent, Jiangxi Copper was up 0.06 percent, Aluminum Corp of China (Chalco) spiked 2.29 percent, Yankuang Energy retreated 1.37 percent, PetroChina shed 0.56 percent, China Petroleum and Chemical (Sinopec) and China Shenhua Energy both sank 0.91 percent, Gemdale rallied 2.21 percent, Poly Developments gained 0.73 percent, China Vanke rose 0.51 percent and China Construction Bank and Huaneng Power were unchanged.

The lead from Wall Street is broadly positive as the major averages opened sharply higher on Tuesday and stayed that way throughout the session.

The Dow surged 489.83 points or 1.43 percent to finish at 34,827.70, while the NASDAQ rallied 326.64 points or 2.37 percent to end at 14,094.38 and the S&P 500 jumped 84.15 points or 1.91 percent to close at 4,495.70.

The rally on Wall Street came following the release of the Labor Department's highly anticipated report on consumer price inflation in October, which came in lower than expected.

The report may provide the Federal Reserve with confidence that inflation is on a downward trajectory, so further rate hikes may not be necessary.

Treasury yields moved sharply lower following the release of the report, adding to the buying interest on Wall Street.

Crude oil futures failed to hold gains and settled flat on Tuesday as traders reacted to a report from the International Energy Agency that oil markets won't be as tight as expected this quarter. West Texas Intermediate Crude oil futures for December settled at $78.26 a barrel, unchanged from the previous close.

Closer to home, China will see October figures for industrial production, retail sales, fixed asset investment and unemployment later today. Production is tipped to add 4.3 percent on year, easing from 4.5 percent in September. Sales are expected to rise an annual 7.0 percent, up from 5.5 percent in the previous month. FAI is called steady at 3.1 percent, and the jobless rate is also seen unchanged, at 5.0 percent.