China Stock Market May Extend Thursday's Gains

(RTTNews) - The China stock market ticked higher again on Thursday, one day after ending the three-day winning streak in which it had advanced almost 25 points or 0.8 percent. The Shanghai Composite Index now rests just above the 3,200-point plateau and it may add to its winnings on Friday.

The global forecast for the Asian markets is upbeat on progress to end the debt ceiling situation in the United States. The European and U.S. markets mere up and the Asian bourses figure to follow that lead.

The SCI finished barely higher on Thursday following gains from the oil companies and mixed performances from the financials and properties.

For the day, the index rose 0.07 points or 0.00 percent to finish at 3,204.63 after trading between 3,189.52 and 3,225.09. The Shenzhen Composite Index added 9.05 points or 0.45 percent to end at 2,012.23.

Among the actives, Industrial and Commercial Bank of China collected 0.62 percent, while Bank of China rose 0.26 percent, China Construction Bank fell 0.31 percent, China Merchants Bank sank 0.74 percent, Bank of Communications shed 0.51 percent, China Life Insurance improved 1.23 percent, Aluminum Corp of China (Chalco) added 0.55 percent, Yankuang Energy lost 0.44 percent, PetroChina jumped 1.73 percent, China Petroleum and Chemical (Sinopec) rallied 2.04 percent, Huaneng Power dropped 0.88 percent, China Shenhua Energy declined 0.93 percent, Gemdale dipped 0.28 percent, Poly Developments gained 0.55 percent, China Vanke retreated 1.69 percent, China Fortune Land slumped 0.89 percent and Jiangxi Copper was unchanged.

The lead from Wall Street is solid as the major averages quickly shook off a sluggish start and moved firmly into the green.

The Dow climbed 153.30 points or 0.47 percent to finish at 33,061.57, while the NASDAQ surged 165.70 points or 1.28 percent to end at 13,100.98 and the S&P 500 advanced 41.19 points or 0.99 percent to close at 4,221.02.

The strength that emerged on Wall Street came after the House voted Wednesday night to approve the bill raising the U.S. debt ceiling.

The legislation now heads to the Senate, where Majority Leader Chuck Schumer, D-N.Y., said he hopes lawmakers can work quickly and bring the bill to the president's desk "as soon as possible."

In economic news, payroll processor ADP said private sector employment in the U.S. jumped more than expected in May. Also, the Labor Department noted a slight increase in first-time claims for U.S. unemployment benefits last week.

Crude oil prices rose sharply Thursday on hopes OPEC will announce a cut in production. Oil prices were also supported by a weak U.S. dollar and the passage of the debt ceiling bill. West Texas Intermediate crude futures for July ended higher by $2.01 or 3 percent at $70.10 per barrel.