Win Streak May Continue For China Stock Market

(RTTNews) - The China stock market has climbed higher in three straight sessions, improving almost 50 points or 1.5 percent along the way. The Shanghai Composite Index now rests just beneath the 3,125-point plateau and it's expected to extend its gains on Thursday.

The global forecast for the Asian markets is positive on easing concerns over the outlook for interest rates. The European and U.S. markets were up and the Asian bourses are expected to open in similar fashion.

The SCI finished slightly higher on Wednesday as gains from the properties and financials were offset by weakness from the resource and energy companies.

For the day, the index perked 7.00 points or 0.22 percent to finish at 3,123.52 after trading between 3,109.45 and 3,129.09. The Shenzhen Composite Index rose 1.23 points or 0.06 percent to end at 2,005.35.

Among the actives, Industrial and Commercial Bank of China climbed 1.16 percent, while Bank of China and Bank of Communications both strengthened 1.27 percent, China Construction Bank collected 0.89 percent, China Merchants Bank spiked 2.85 percent, China Life Insurance rallied 2.81 percent, Jiangxi Copper declined 1.60 percent, Aluminum Corp of China (Chalco) tumbled 1.98 percent, Yankuang Energy plunged 3.68 percent, PetroChina fell 0.40 percent, China Petroleum and Chemical (Sinopec) perked 0.23 percent, Huaneng Power retreated 1.77 percent, China Shenhua Energy skidded 1.00 percent, Gemdale skyrocketed 6.10 percent, Poly Developments soared 3.89 percent, China Vanke surged 4.61 percent and China Fortune Land accelerated 2.01 percent.

The lead from Wall Street is upbeat as the major averages shook off early weakness on Wednesday, moved firmly higher midday and ended solidly in the green.

The Dow jumped 133.40 points or 0.40 percent to finish at 33,269.77, while the NASDAQ climbed 71.78 points or 0.69 percent to close at 10,458.76 and the S&P 500 gained 28.83 points or 0.75 percent to end at 3,852.97.

The volatility on the day came as traders awaited and subsequently reacted to the minutes of the Federal Reserve's December monetary policy, which reinforced expectations the central bank is likely to continuing raising interest rates.

The minutes reiterated that officials continue to anticipate that ongoing rate increases would be appropriate - although perhaps slower - to achieve the Fed's dual objectives of maximum employment and price stability.

On the U.S. economic front, the Institute for Supply Management released a report showing U.S. manufacturing activity contracted at a slightly faster rate in the month of December.

Oil prices fell on Wednesday, extending recent losses as worries about energy demand amid rising fears of a global recession continued to weigh on the commodity. West Texas Intermediate Crude oil futures for February ended down $4.09 or 5.3 percent at $72.84 a barrel.

Closer to home, China will see December results for the services PMI from Caixin later this morning; in November, the PMI score was 46.7.