China Stock Market May See Additional Support

(RTTNews) - The China stock market has moved higher in back-to-back sessions, collecting more than 20 points or 0.5 percent along the way. The Shanghai Composite Index now sits just beneath the 3,990-point plateau and it may extend its gains on Tuesday. The global forecast for the Asian markets is cautiously optimistic, with energy and technology stocks expected to provide support. The European markets were down and the U.S. bourses were up and the Asian markets figure to follow the latter lead. The SCI finished slightly higher on Monday following gains from the financial shares, oil companies and property stocks For the day, the index perked 2.33 points or 0.06 percent to finish at 3,988.56 after trading between 3,966.20 and 3,991.26. The Shenzhen Composite Index added 14.24 points or 0.54 percent to end at 2,666.54. Among the actives, Industrial and Commercial Bank of China improved 0.82 percent, while Bank of China collected 0.71 percent, Agricultural Bank of China gained 0.76 percent, China Merchants Bank shed 0.59 percent, Bank of Communications increased 0.74 percent, China Life Insurance lost 0.66 percent, Jiangxi Copper vaulted 1.43 percent, Aluminum Corp of China (Chalco) retreated 1.54 percent, Yankuang Energy rallied 2.95 percent, PetroChina advanced 0.83 percent, China Petroleum and Chemical (Sinopec) rose 0.34 percent, Huaneng Power expanded 1.17 percent, China Shenhua Energy dipped 0.13 percent, Gemdale climbed 1.09 percent, Poly Developments spiked 2.32 percent and China Vanke added 0.51 percent.

The lead from Wall Street is positive as the major averages opened under water on Monday but quickly trended to the upside and into the green, finishing at daily highs.

The Dow climbed 301.68 points or 063 percent to finish at 48,218.25, while the NASDAQ jumped 280.84 points or 1.23 percent to close at 23,183.74 and the S&P 500 rallied 69.35 points or 1.02 percent to end at 6,886.24.

The strength that emerged on Wall Street came as traders kept an eye on developments in the Middle East after weekend talks between the U.S. and Iran failed to produce an agreement.

Crude oil prices surged on Monday after U.S. President Donald Trump imposed a blockade on ships transiting to and from Iran via the Strait of Hormuz. West Texas Intermediate crude for May delivery was up $2.67 or 2.76 percent at $99.24 per barrel. While the news contributed to a significant increase by the price of crude oil, traders seem optimistic Trump will back down once again and avoid a return to war.

Traders were also looking ahead to the start of earnings season, with companies largely expected to report strong financial results despite the Middle East conflict.