Win Streak May Continue For China Stock Market

(RTTNews) - The China stock market has moved higher in two straight sessions, collecting almost 20 points or 0.6 percent along the way. The Shanghai Composite Index now rests just beneath the 3,215-point plateau and it's likely to extend its gains on Friday.

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

The SCI finished modestly higher on Thursday following gains from the financial shares, property stocks and resource companies.

For the day, the index added 15.83 points or 0.49 percent to finish at 3,213.59 after trading between 3,180.54 and 3,225.53. The Shenzhen Composite Index dipped 2.95 points or 0.15 percent to end at 1,992.33.

Among the actives, Industrial and Commercial Bank of China jumped 1.60 percent, while Bank of China spiked 2.72 percent, China Construction Bank climbed 1.06 percent, China Merchants Bank accelerated 2.34 percent, Bank of Communications rallied 2.02 percent, China Life Insurance collected 1.54 percent, Jiangxi Copper advanced 0.90 percent, Aluminum Corp of China (Chalco) strengthened 1.63 percent, Yankuang Energy soared 2.57 percent, PetroChina increased 2.09 percent, China Petroleum and Chemical (Sinopec) surged 1.99 percent, Huaneng Power improved 1.18 percent, China Shenhua Energy added 0.95 percent, Gemdale gained 1.70 percent, Poly Developments rose 2.56 percent, China Vanke gathered 1.85 percent, China Fortune Land perked 1.28 percent and Beijing Capital Development skyrocketed 4.02 percent.

The lead from Wall Street is positive as the major averages shook off a flat lead on Thursday and climbed steadily throughout the session, ending solidly in the green.

The Dow climbed 168.59 points or 0.50 percent to finish at 33,833.61, while the NASDAQ jumped 133.63 points or 1.02 percent to close at 13,238.52 and the S&P 500 rose 26.41 points or 0.62 percent to end at 4,293.93.

The strength on Wall Street reflected easing concerns about the outlook for interest rates following the Labor Department report showing initial jobless claims increased by much more than expected last week.

While jobless claims can be volatile around holidays like Memorial Day, the data seems to have added to optimism that the Federal Reserve will pause its interest rate hikes at Wednesday's meeting.

Crude oil prices regained ground after a midday sell-off but still ended Thursday's trading session firmly in negative territory as concerns about the outlook for energy demand continued to weigh on the markets. West Texas Intermediate for July shed $1.24 or 1.7 percent at $71.29 a barrel.

Closer to home, China will release May numbers for consumer and producer prices later this morning. In April, consumer prices were down 0.1 percent on month and up 0.1 percent on year, while producer prices sank 3.6 percent on year.