China Stock Market Tipped To Add To Its Winnings

(RTTNews) - The China stock market has finished higher in four straight sessions, advancing more than 60 points or 1.9 percent along the way. The Shanghai Composite Index now rests just shy of the 3,250-point plateau and it's expected to continue its winning run.

The global forecast for the Asian markets is upbeat on bargain hunting and easing concerns over the outlook for interest rates. The European markets were mixed and the U.S. bourses were sharply higher and the Asian markets figure to split the difference.

The SCI finished barely higher on Wednesday as gains from the resource stocks were offset by weakness from the financials and properties.

For the day, the index picked up 2.85 points or 0.09 percent to finish at 3,246.29 after trading between 3,227.82 and 3,253.77. The Shenzhen Composite Index added 9.92 points or 0.47 percent to end at 2,123.20.

Among the actives, Industrial and Commercial Bank of China dipped 0.23 percent, while Bank of China fell 0.33 percent, China Construction Bank eased 0.18 percent, China Merchants Bank sank 0.71 percent, Bank of Communications slid 0.22 percent, China Life Insurance was down 0.30 percent, Jiangxi Copper jumped 1.74 percent, Aluminum Corp of China (Chalco) skyrocketed 7.88 percent, Yankuang Energy advanced 0.78 percent, PetroChina shed 0.53 percent, Huaneng Power surged 4.16 percent, China Shenhua Energy dropped 0.82 percent, Gemdale lost 0.50 percent, Poly Developments declined 0.45 percent, China Vanke retreated 1.85 percent and China Petroleum and Chemical (Sinopec) and China Fortune Land were unchanged.

The lead from Wall Street is broadly positive as the major averages opened slightly higher on Wednesday but accelerated as the day progressed, ending near session highs.

The Dow surged 435.98 points or 1.40 percent to finish at 31,581.28, while the NASDAQ rallied 246.99 points or 2.14 percent to end at 11,791.90 and the S&P 500 jumped 71.68 points or 1.83 percent to close at 3,979.87.

The rally on Wall Street came as traders looked to pick up stocks at reduced levels following recent weakness, which dragged the major averages down to their lowest levels in over a month; traders may now feel that interest rate concerns have been priced into the markets.

The rebound also came amid a pullback by treasury yields, with the yield on the benchmark ten-year note receding after reaching a nearly three-month high on Tuesday.

Stocks saw further upside following the release of the Federal Reserve's Beige Book, which said economic activity in the U.S. has been essentially unchanged since early July. Also, the Commerce Department said the U.S. trade deficit narrowed significantly in July.

Crude oil prices fell sharply on Wednesday on concerns about the outlook for energy demand amid rising fears of a global recession. West Texas Intermediate Crude oil futures for October ended lower by $4.94 or 5.7 percent at $81.94 a barrel, the lowest settlement since January 11.