Win Streak May Continue For China Stock Market

(RTTNews) - The China stock market has moved higher in two straight sessions, collecting more than 30 points or 1 percent along the way. The Shanghai Composite Index now rests just above the 3,196-point plateau and it's likely to open higher again on Monday.

The global forecast for the Asian market is upbeat on continued optimism 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 sharply higher on Friday following gains from the financial shares and oil companies, while the properties were mixed.

For the day, the index climbed 31.86 points or 1.01 percent to finish at the daily high of 3,195.31 After moving as low as 3,167.51.

Among the actives, Industrial and Commercial Bank of China advanced 0.93 percent, while Bank of China strengthened 1.25 percent, China Construction Bank collected 0.53 percent, China Merchants Bank jumped 1.56 percent, Bank of Communications improved 0.83 percent, China Life Insurance spiked 2.51 percent, Jiangxi Copper was up 0.16 percent, Aluminum Corp of China (Chalco) rallied 1.67 percent, Yankuang Energy eased 0.06 percent, PetroChina climbed 0.99 percent, China Petroleum and Chemical (Sinopec) rose 0.23 percent, Huaneng Power retreated 1.24 percent, China Shenhua Energy added 0.63 percent, Gemdale dipped 0.10 percent, Poly Developments lost 0.44 percent, China Vanke gained 0.97 percent and Beijing Capital Development soared 1.64 percent.

The lead from Wall Street ends up positive as the major averages shook off early weakness on Friday, climbing into the green for good by the afternoon.

The Dow gained 112.61 points of 0.33 percent to finish at 34,302.61, while the NASDAQ jumped 78.06 points or 0.71 percent to end at 11,079.16 and the S&P 500 rose 15.92 points or 0.40 percent to close at 3,999.09.

For the week, the NASDAQ surged 4.8 percent, the S&P gained 2.7 percent and the Dow rose 2.0 percent.

The initial weakness on Wall Street came as traders looked to cash in on some the recent strength in the markets amid a negative reaction to earnings news from several big-name financial companies.

The recovery came as upbeat consumer sentiment and inflation expectations data helped offset the early negative sentiment.

Crude oil prices rose sharply Friday on optimism for less aggressive rate hikes in the United States after inflation slowed in December. West Texas Intermediate crude oil futures for February ended higher by $1.47 or 1.9 percent at $79.86 a barrel.

Closer to home, China will see December figures for its house price index later today; in November, house prices were down 1.6 percent on year.