Higher Open Predicted For China Stock Market

(RTTNews) - The China stock market has moved higher in four straight sessions, collecting almost 60 points or 1.5 percent along the way. The Shanghai Composite Index now sits just above the 4,025-point plateau and it may add to its winnings again on Thursday.

The global forecast for the Asian markets is murky, with profit taking warring with support from the oil and technology sectors. The European and U.S. markets were mixed and the Asian bourses are expected to behave similarly.

The SCI finished barely higher on Wednesday as gains from the financial shares were offset by weakness from the property and oil companies.

For the day, the index perked 0.58 points or 0.01 percent to finish at 4,027.21 after trading between 4,020.90 and 4,050.62. The Shenzhen Composite Index fell 19.13 points or 0.71 percent to end at 2,685.30.

Among the actives, Industrial and Commercial Bank of China collected 0.54 percent, while Bank of China perked 0.07 percent, Agricultural Bank of China spiked 2.81 percent, China Merchants Bank jumped 1.97 percent, Bank of Communications added 0.43 percent, China Life Insurance dipped 0.19 percent, Jiangxi Copper climbed 1.14 percent, Aluminum Corp of China (Chalco) retreated 1.28 percent, Yankuang Energy tumbled 1.54 percent, PetroChina declined 1.42 percent, China Petroleum and Chemical (Sinopec) slumped 1.56 percent, Huaneng Power improved 0.72 percent, China Shenhua Energy rose 0.37 percent, Gemdale contracted 1.39 percent, Poly Developments eased 0.17 percent and China Vanke dropped 1.24 percent.

The lead from Wall Street provides little clarity as the major averages opened higher on Wednesday, although the Dow splintered off and finished slightly under water.

The Dow shed 72.27 points or 0.15 percent to finish at 48,463.72, while the NASDAQ jumped 376.93 points or 1.59 percent to end at a record 24,016.02 and the S&P 500 gained 55.57 points or 0.80 percent to close at 7,022.95, also a record.

The extended surge by the NASDAQ reflected strength among tech stocks, with Broadcom (AVGO) helping to lead the sector higher after the chip maker announced a multi-year strategic partnership with Meta's (META).

Traders also expressed optimism about a resolution of the conflict in the Middle East even as they await additional details about another round of peace talks between the U.S. and Iran.

Crude oil edged higher on Wednesday as traders weighed the prospects of success in the upcoming U.S-Iran talks against the ongoing U.S. blockade on all Iranian ports across the Strait of Hormuz, which is keeping the supply concerns alive. West Texas Intermediate crude for May was up $0.36 or 0.39 percent at $91.64 per barrel.

Closer to home, China is scheduled to release a raft of data this morning, including Q1 figures for gross domestic product and March data for industrial production, retail sales, fixed asset investment and unemployment.

GDP is expected to rise 1.4 percent on quarter and 4.8 percent on year after adding 1.2 percent on quarter and 4.5 percent on year in the previous three months. Industrial production is expected to slow to an annual 5.3 percent from 6.3 percent in February.

Retail sales are called higher by 2.5 percent on year, easing from 2.8 percent in the previous month. FAI is tipped to add 2.0 percent on year, up from 1.8 percent a month earlier. The jobless rate is tipped to ease to 5.2 percent from 5.3 percent in February.