China Stock Market May Add To Its Winnings On Monday

(RTTNews) - The China stock market has climbed higher in two straight sessions, collecting more than 25 points or 0.8 percent along the way. The Shanghai Composite Index now rests just above the 3,230-point plateau and it's got another solid lead for Monday's trade.

The global forecast for the Asian markets is broadly positive on solid U.S. employment data and easing fears of recession. The European and U.S. markets were up and the Asian markets are expected to open in similar fashion.

The SCI finished modestly higher on Friday following gains from the property stocks and resource companies, while the financials and energy shares were mixed.

For the day, the index gained 25.44 points or 0.79 percent to finish at 3,230.07 after trading between 3,211.74 and 3,233.99. The Shenzhen Composite Index improved 23.39 points or 1.16 percent to finish at 2,035.62.

Among the actives, Industrial and Commercial Bank of China collected 0.41 percent, while Bank of China shed 0.51 percent, China Construction Bank lost 0.63 percent, China Merchants Bank soared 3.15 percent, Bank of Communications eased 0.17 percent, China Life Insurance strengthened 1.59 percent, Jiangxi Copper spiked 2.54 percent, Aluminum Corp of China (Chalco) surged 3.86 percent, Yankuang Energy rallied 2.22 percent, PetroChina perked 0.26 percent, Huaneng Power tumbled 2.18 percent, China Shenhua Energy climbed 1.04 percent, Gemdale accelerated 5.12 percent, Poly Developments skyrocketed 6.01 percent, China Vanke jumped 3.71 percent, China Fortune Land improved 3.59 percent and China Petroleum and Chemical (Sinopec) was unchanged.

The lead from Wall Street is solid as the major averages opened higher on Friday and accelerated as the day progressed, ending near session highs.

The Dow surged 701.16 points or 2.12 percent to finish at 33,762.76, while the NASDAQ jumped 139.77 points or 1,07 percent to end at 13,240.77 and the S&P 500 spiked 61.35 points or 1.45 percent to close at 4,282.37. For the week, the Dow and NASDAQ both jumped 2.0 percent and the S&P climbed 1.8 percent.

The extended rally on Wall Street followed the release of a closely watched Labor Department report showing U.S. employment surged by much more than expected in the month of May.

Positive sentiment was also generated in reaction to news the Senate voted to pass the bill raising the U.S. debt ceiling late Thursday night, and President Joe Biden has since made it official with his signature.

The passage of the bill eliminated the threat of a potentially disastrous default by the U.S. government, which had been hanging over the markets in recent weeks.

Oil prices rallied on Friday, extending gains from the previous session following the passage of the debt ceiling bill and amid speculation OPEC may announce a cut in production. West Texas Intermediate Crude oil futures for July ended higher by $1.64 or 2.3 percent at $71.74 a barrel.

Closer to home, China will see May results for the services and composite indexes from Caixin later this morning; in April, their scores were 56.4 and 52.9, respectively.